Today’s Scottish Budget followed Phillip Hammond’s lead with a tax break for first-time buyers that will help thousands onto the property ladder.
Scotland’s finance secretary Derek Mackay announced today in Holyrood that first-time buyers will be given a helping hand with a new land and business transaction tax (LBTT) relief for properties worth up to £175,000. He added that as many as 80% of first-time buyers would now be exempt from paying any of the tax when buying a new home.
The move was expected by many, after First Minister Nicola Sturgeon hinted last month that Scotland may make similar changes to those seen in England in the Autumn Budget on 22 November.
Latest figures show that the cost of raising a deposit for a property in Scotland could reach nearly £60,000 in the next decade as property prices rise, so the tax relief will be welcome to many who will potentially now be able to save thousands.
LBTT was introduced in April 2015 to replace stamp duty in Scotland, and applies to all residential and commercial land and buildings transactions where chargeable interest is acquired.
The current structure:
|Purchase price||LBTT rate|
|Up to £145,000||0%|
|Above £145,000 to £250,000||2%|
|Above £250,000 to £325,000||5%|
|Above £325,000 to £750,000||10%|