July 16, 2020

It is good news for those trying to get on to the property ladder just now as the Land and Buildings Transaction Tax (LBTT) residential threshold has increased from £145,000 to £250,000.

In Scotland, buyers must pay a lump sum tax called LBTT (equivalent to Stamp Duty in England) on properties costing over a certain amount, and the percentage tax payable increases with the price of the property. The new £250,000 threshold is now in force, meaning all buyers will pay no tax on properties purchased for up to £250,000 (until 31 March 2021).

The total amount a buyer can save under the temporary measures will depend on how much the property costs – generally, the more expensive the property, the more you’ll save up to a maximum of £2,100. It is a welcome announcement for many.

As well as raising the starting threshold for LBTT, the Scottish Government is injecting £50m into the First Home Fund, which provides first time buyers with up to £25,000 to buy a property.

The UK government has also raised the threshold at which SDLT is paid on house purchases in England and Northern Ireland helping to boost market activity.