In the Scottish Government Budget announced last week, Finance Secretary Kate Forbes confirmed that the change to the residential LBTT nil rate band, introduced in July 2020, will not be extended. From 1 April 2021 onwards, the ceiling of the nil rate band will return to £145,000 for residential properties and £175,000 for First Time Buyers.
The zero tax LBTT threshold of £250,000 was always a temporary measure to help those buying residential properties and moving home throughout the pandemic.
There is still time, however if you are currently looking to move home and relying on the LBTT holiday you would need to act now as timescales will be tight to secure a mortgage and sign missives in advance of the 31st March 2021 deadline.
According to Rightmove, the UK housing market has seen the busiest ever start to a year, and this time of year is always a key time to sell when demand often exceeds supply. We have one of the largest property teams in Edinburgh and the Lothians so please get in touch if you are considering moving home.