The Scottish Government has announced an increase the Land and Buildings Transaction Tax (LBTT) threshold from £145,000 to £250,000 until 31st March 2021.
If you’re buying your first home or moving home and purchase a residential property below £250,000, you could potentially save thousands as you won’t have LBTT to pay.
For example, if you’re moving home and buy a house for £225,000, you would have previously paid £1,600 LBTT. Now, you could put this £1,600 towards your deposit or furniture for your new home.
It’s important to note that if you’re buying a second home or a buy-to-let property, LBTT is still applicable even if the purchase price is below £250,000.
According to the Scottish Finance secretary, approximately eight out of ten house sales in Scotland will be exempt from the tax.
This announcement is a positive step to stimulate the housing market and the economy, with a distinctive approach to help first-time buyers onto the property ladder.