The Scottish Government has increased the Land and Buildings Transaction Tax (LBTT) threshold from £145,000 to £250,000.
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.
The threshold increase came into place on Wednesday 15th July 2020 and will remain in place until Wednesday 31st March 2021.
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.