New Scottish property transaction tax.
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%
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