Changes to Land and Buildings Transaction Tax explained

As of 15 July, the Scottish government is cutting the rate of its devolved Land and Buildings Transaction Tax (LBTT), with the threshold increasing from £145,000 to £250,000 until 31 March 2021.  
There will be no LBTT paid on homes up to £250,000, 5% on homes priced from £250,001 to £325,000, 10% on homes from £325,001 to £750,000 and 12% on homes over £750,000. This will mean that residential property transactions, where the purchase price is under £250,000, and to which the Additional Dwelling Supplement (ADS) does not apply, will attract no LBTT.  

Visit gov.scot for more information 
For transactions where the purchase price is above £250,000, the rates and thresholds that usually apply to the proportion of the purchase price above that amount remain unchanged. 
According to the legislation introduced to the Scottish Parliament, the revised rates and bands will apply to all relevant transactions where the effective date is between 15 July 2020 and 31 March 2021, inclusive of these dates. 
Guild Member, Alyson Lowe from Alexander Taylor in Scotland, says the change is good news for the Scottish property market: “Finally, the Scottish Government have given us a precious gift of raising the LBTT figure from £145,000 to £250,000. This is massive to the economic growth of the country and particularly the property sector. A huge 80% of transactions in Scotland are under £250,000, which means the change will have a significant impact to market and buyers moving forward. The jump from £145,000 to £250,000 means around 34% more transactions will no longer pay LBTT.” 
In April 2015, LBTT replaced Stamp Duty Land Tax (SDLT) in Scotland. While the Scottish government faced some criticism over its delayed reaction to the earlier announcement of the changes to SDLT In England and Northern Ireland earlier this month, changes are now welcomed by the sector with open arms.  
 
Additional Dwelling Supplement  
ADS is an additional amount of LBTT payable on the purchase of a second residence in Scotland. Where the ADS does apply, the change to the starting threshold will also apply to such transactions. This means that a residential property transaction that is liable to the ADS will not pay the standard rates of LBTT on the first £250,000 of the purchase price, however, the ADS will remain payable at 4% of the total purchase price. 
“What a time we have all come through, we will forever remember 2020 as the year where our very existence has changed beyond anyone’s predictions. Hopefully, this encouraging announcement about LBTT will ignite the Scottish property market and will help a lot of people make a positive change this year,” Lowe concludes.
 
Calculate LBTT 

Are you looking to buy property in Scotland to benefit from the new LBTT rates? Find out how much LBTT you’ll have to pay using our online calculator. 
 

Financial Services

Contact a specialist from Aston & Co Financial Services for help with finding the right mortgage.

Read What Our
Customers Say

Jodie Skinner

From the beginning, our experience with Michael and Rhys has been brilliant. Whenever we had a question to ask or needed some additional information, they were both just a phone call away and were always happy to provide us with an answer. As first time buyers, they made us feel ...

Sue Smith

We can’t fault Aston and co in Syston, for their handling of the sale of our property. We were kept up to date weekly and nothing was too much trouble. Both Micheal and Rhys were approachable and very professional. I would definitely recommend using them for an efficient and hassle ...

Andy

Having had issues with other agents, we came to Astons who gave us an honest appraisal of our house – not overpricing it like others to gain business. Michael and Rhys are a great partnership and Rhys being local was able to provide viewers with information that other agents hadn’t. ...

Andy Freer

Recently sold our house with Aston & Co. We honestly could not have asked for more. From the moment Michael came to value the house, to the day to day communication from Rhys we have not had to chase them once. Michael and Rhys are a great partnership and a ...

V Pears

We chose Aston & Co in Syston to handle the sale of our property. We were kept up to date regularly and Michael and Rhys dealt with all matters efficiently and quickly.We would definitely recommend using them for an efficient and hassle-free move.

Gareth Mueller

We bought a house from a vendor who used Astons & Co as their agent. Rhys was helpful and professional from start to finish and regularly kept us in the loop with how things were progressing. Communication was efficient and swift all the way through.

Julie Pearson

From the first visit to value our property to the final phone call informing us of completion Rhys and Michael at the Syston office have been brilliant, down to earth, realistic with valuation very easy to get in touch with.Making everything less stressful.Regular updates were very reassuring . I would ...

Charlotte Hings

The team at Astons are great. They’re really down to earth, take time to listen and help resolve anything they can for you.Their communication is excellent as they always keep you in the loop with what is happening with your sale. They keep both seller and purchaser happy.Fees are reasonable ...

Julie Perkins

We have recently used Aston & Co to sell our property. At all times we received regular reports from them on interest and following viewings . When our property sold Astons managed the chain keeping all parties fully informed and I believe that without their input our sale would have ...

Tina Poole

Michael and Rhys handled both our sale and purchases. They had good local knowledge, their valuation turned out to be on point. Our sale viewings were nearly all on the same day and we accepted an offer very quickly. We were kept up to date regularly with that and our ...

How Much is Your Property Worth?

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation.

PROPERTY SEARCH