New Scottish property transaction tax.

April 1, 2015

As from today a new Scottish tax will be introduced that will replace the UK property stamp duty tax, it is named the Land and Buildings  Transaction Tax (LBTT), this comes about following the introduction of new devolved powers contained in the Scotland Act 2012.

This will be the first tax to be introduced by the Scottish Parliament in 300 years, the Land and Buildings  Transaction Tax  will employ the graduated tax method as is used with income tax.

The rates are broken down into 5 bands similar to the UK stamp duty tax on property, Finance Secretary John Swinney is reported as saying that  the new tax rates will see 50% of all household transactions paying no tax and more than 40,000 buyers paying less on the purchase of a new home.

The rate bands for both LBTT and UK stamp duty rates are now as follows.

LBTT band rates in effect from today

Up to £145,000 – 0%

£145,001 to £250,000 – 2%

£250,001 to £325,000 – 5%

£325,001 to £750,000 – 10%

£750,001 and over – 12%

UK stamp duty rates from December 2014

Up to £125,000 – 0%

£125,001 to 250,000 – 2%

£250,001 to £925,000 – 5%

£925,001 to £1.5m – 10%

£1.5m and over – 12%

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Solutions to fix construction skills

The Centre for Social Justice (CSJ) has released a report titled, ‘Skills to Build: Fixing Britain’s construction workforce crisis.’ After speaking to several organizations and having roundtables to garner a wide understanding of the sectors’ perspectives and needs, they have proposed twenty six recommendations that will fix the issues underpinning the skills crisis. Richard Beresford,…
Read More →
Breaking News

Budget Commentary – Mansion Tax, Business Rates & Planning Reform

Andrew Teacher, Co-founder at LauderTeacher, one of the UK’s leading advisors on real estate communications, investor relations and a former spokesman for the BPF, comments on the potential Budget. Mansion tax “Nobody likes paying tax, but the reality is a council tax revaluation is long overdue. Rather than distorting the market, which is what a…
Read More →
Rightmove logo
Breaking News

Budget 2025 market data & home-mover and agent insight

Speculation about property tax changes is fuelling uncertainty across much of the market Rightmove research found that home-movers would favour staggered stamp duty payments, while a poll of estate agents also suggested that staggered payments would be a preferable change to shifting payment to the seller Rightmove data on rumoured property tax changes Mansion Tax…
Read More →
Breaking News

Breaking Property News 24/11/25

Daily bite-sized proptech and property news in partnership with Proptech-X. Symple resolves four core issues in the new Renter’s Rights Act Automating compliance in the new PRS landscape   The Renters’ Rights Act has raised the bar for private landlords in England in terms of property condition, hazard resolution, evidence of compliance and regulatory registration. Symple…
Read More →
Breaking News

What does Rachel Reeves have in store for the UK property market?

With the Autumn Budget now just days away, speculation is mounting that the Chancellor, Rachel Reeves, will use property taxation as a central tool to address the widely reported fiscal shortfall of between £20bn and £40bn. As a result, the housing market has entered a period of caution, with asking prices falling 1.8 percent in…
Read More →
Letting Agent Talk

Why Property Guarantors Need Legal Advice Before Signing

When it comes to property deals, it’s natural to look for additional support, especially when you’re not fully confident about meeting the terms of the agreement. This is where a guarantor comes into play, as they step in to give the property owner some assurance. The idea of helping someone you trust can feel quite…
Read More →