Stamp Duty (LBTT) Threshold Raised
The threshold at which Land and Buildings Transaction Tax (LBTT) is paid was increased from £145,000 to £250,000 on Wednesday 15th July as the Government stepped up efforts to support homebuyers and help the economy recover from the impact of the COVID-19 pandemic.
The announcement was made by finance secretary Kate Forbes. It means that 80% of buyers in Scotland will be exempt from the charge, excluding the Additional Dwelling Supplement.
The announcement followed Chancellor Rishi Sunak’s Summer Statement in which he announced that in England and Northern Ireland, Stamp Duty would not be payable for properties with a purchase price of £500,000 or less.
For those moving into a home costing more than £250,000, they will save £2,1000.
Finance Secretary Kate Forbes said: “I am delighted that we are able to implement this measure quickly and remove uncertainty from the market.
“The UK Government had weeks to prepare for its decision this week to raise the threshold at which Stamp Duty Land Tax is paid on house purchases in England and Northern Ireland, yet we were given no advance notice.
“We responded yesterday to clarify our policy intentions and by introducing the change so rapidly, we are providing certainty to people in the process of purchasing a home. Overall, increasing the LBTT threshold will help increase housing market activity, boost the construction sector and stimulate our economy.
“Alongside this distinctive Scottish approach to raising the starting threshold for LBTT, I am also targeting further support in other areas. For example, we are injecting £50m into our First Home Fund, which provides first time buyers with up to £25,000 to buy a property. This will help an estimated 2,000 first time purchases.
“To mitigate the immediate adverse impact on the housing market in Scotland as a result of the Chancellor’s announcement, we are now working at pace on the necessary legislation and to ensure Revenue Scotland is ready to collect and manage the tax.”
If you would like to take advantage of this threshold rise, talk to us at Urban Union. We have several properties for sale at present that are available to reserve – take a look at our current property availability in Perth, Glasgow and Edinburgh.