New tax for BTL and second homes in Scotland

December 17, 2015

It is not surprising that when George Osborne announced the additional 3% stamp duty for buy-to-let and holiday homes starting next April,  there was little critiscm from over the border as there normally is when any new tax  is introduced by Westminster.

The Scottish Government has now also decided  to introduce an additional 3% tax on buy-to-let and holiday homes valued at more than £40,000, this was confirmed by  Finance Minister John Swinney.

That would mean for a second home costing £250,000 there would be an increase from £2,100 up to  £9,600, for a £500,000 purchase it will increase  from £23,350 to £38,350.

Mr Swinney said the move was ‘proportionate and fair’, adding that it would make it easier for first-time buyers to enter the housing market.

He warned middle-income families he would come for them after the Scottish parliament elections in five months, vowing to introduce a ‘progressive’ system next year.

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

Estate Agent Talk

DIY Due Diligence: Essential House Checks to Conduct Before You Buy!

Before making an offer on a house, conducting simple checks can save time and money. These checks help identify potential problems that may not be visible during a casual viewing.  Performing DIY due diligence ensures that buyers are informed and can negotiate effectively. A thorough inspection of the property’s condition is essential. This may include…
Read More →
Breaking News

Inheritance Tax raises £7 billion in 10 months

Inheritance tax receipts hit £7 billion in the ten months from April 2024 to January 2025, according to figures released by HM Revenue and Customs (HMRC) this morning. This is £700 million higher than the same ten months last year and continues the upward trajectory over the last two decades. HMRC raised £7.499 billion in…
Read More →
Breaking News

Decline in small house builders continues, warns FMB

New figures for planning applications in 2024, published by the Government today show worrying signs that, despite the push to boost house building rates, permissions granted to small sites of 9 units or fewer are down, demonstrating the smallest house builders are struggling to get homes delivered, warns the FMB. Brian Berry, Chief Executive of the…
Read More →
bank of england interest rate
Breaking News

Bank of England decision to maintain interest rates at 4.5% – Thoughts from the Industry

With the Bank of England decision to maintain interest rates at 4.5% here are some thoughts from the Industry Matt Smith, Rightmove’s mortgage expert: “Now that this expected interest rate hold is out of the way, all eyes are on May’s decision where the current forecast is a second cut of the year. Since the…
Read More →
Love or Hate Rightmove
Breaking News

Rightmove – Cheapest mortgage rate is now a 2-year fixed

The lowest available mortgage rate is now a 2-year fixed rate, for those with a 40% deposit. Commenting more widely on mortgage trends, Matt Smith, Rightmove’s mortgage expert says: “Average mortgage rates at the top-end of the market have fallen more quickly than for those with the smallest deposits over the past year. Someone with a…
Read More →
Estate Agent Talk

Halifax House Price Index March 2025 – Thoughts from the Industry

The latest Halifax data shows that bigger homes driving house price growth as flats lag behind. Here are some thoughts from the Industry. Toby Leek, President of NAEA Propertymark, the professional body for estate agents: “Not only are buyers looking to take advantage of easing interest rates to secure a bigger home, but other trends,…
Read More →