Land and Buildings Tax - Latest Update
Incredibly, it would seem that the Scottish Finance Secretary is on the brink of announcing a revisal to the new bands and rates of the Scottish Government’s Land and Buildings Tax due to come into force on 1st April 2015, replacing the UK stamp duty tax.
Under the original plans, no tax was to be charged on properties up to £135,000 and 2% on properties between £135,000 and £250,000. Controversially, a 10% tax was to be levied on properties between £250,000 and £1 million.
In the Chancellor’s Autumn Statement, overnight changes were made to UK wide stamp duty rates which imposed a less severe rate for properties between £250,000 and £925,000. Under the current LBTT proposals, tax on a house purchase of £350,000 would amount to £12,300 whereas under the Chancellor’s recent UK reforms, in place at the moment, the tax costs just £7,500.
A statement was issued by the Finance Secretary on 17th January 2015 suggesting a possible “U-turn” which will bring the Scottish LBTT more into line with the rest of the UK.
The Scottish property market has experienced a significant “lift” at the start of the New Year as both buyers and sellers have been trying to “beat” the new tax rates which, until the announcement due later this week, had been scheduled to come into force on 1st April.
For more information on property related issues please contact Patricia Gray