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%

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

Who are Rentd
Letting Agent Talk

Renters (Reform) Bill Dropped – Thoughts from the Industry

The Renters (Reform) Bill has been dropped as a result of the general election being called. Here are some thoughts from within the property industry. Ben Beadle, Chief Executive of the National Residential Landlords Association: “It is hugely disappointing that this Bill will not now make it into law. The news comes despite the fact that…
Read More
Estate Agent Talk

July 4 General Election – Thoughts from the Industry

Prime Minister, Rishi Sunak has called a general election for July 4, 2024, citing now being the time for the people of Britain to choose the next government. Here are some thoughts from within the property industry. Tim Bannister, Rightmove’s property expert: “A look back at recent elections shows that house prices and activity usually…
Read More
Rightmove logo
Breaking News

Rightmove’s weekly mortgage tracker

Matt Smith, Rightmove’s mortgage expert said: “Today’s inflation drop feels like an important milestone on the road to the first Base Rate cut. There’s been some to-ing and fro-ing over whether we’ll see a summer Base Rate cut, but today’s news will likely reinforce some of the positive words coming from the Bank of England…
Read More
Estate Agent Talk

Rayner right to be ambitious on housebuilding

At UKREiiF, Angela Rayner, Shadow Housing Secretary made several commitments to help solve the UK’s housing crisis including new towns, greater numbers of affordable housing, a return of housing targets and a clear design code criteria. Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said: “Although election season is the time for…
Read More
Breaking News

Comment on Land Registry’s House Price Index showing an annual rise of 1.8%

Commenting on Land Registry’s UK House Price Index showing an annual rise of 1.8%, Daniel Austin, CEO and co-founder at ASK Partners, said: “The property sector is recovering. Rent values have seen sustained growth, positioning real estate as reasonably valued in comparison to gilts and presenting growth potential. In the realm of commercial real estate,…
Read More
Breaking News

Breaking Property News – 22/05/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Sunak calls General election for 4th July 2024 – American Independece Day Many pundits feel that post the General election Rishi Sunak will fly off to Silicon Valley, so maybe holding the General election on American Independence Day is no coincidence! The real carnage…
Read More