The Scottish Government has announced a first-time buyers’ Land and Buildings Transaction Tax relief for properties up to £175k – increasing the zero-tax level from £145k.
There will also be relief for first-time buyers purchasing above the £175k on the portion of the price below the threshold.
The Scottish Government estimates that up to 80% of first-time buyers will not pay any LBTT. Relief for first time buyers was introduced in the rest of the UK from 22 November 2017, as follows:
- First-time buyers paying £300,000 or less for a residential property will pay no SDLT.*
- First-time buyers paying between £300,000 and £500,000 will pay SDLT at 5% on the amount of the purchase price in excess of £300,000.
- First-time buyers purchasing property for more than £500,000 will not be entitled to any relief and will pay SDLT at the normal rates.
- The new rules apply to transactions with an effective date (usually the date of completion) on, or after, 22 November 2017.
* This measure will apply in Wales until 1 April 2018, when SDLT will be devolved to Wales.
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