The Scottish government announced plans to review its forthcoming Land and Buildings Transaction Tax (LBTT) after UK chancellor, George Osborne made changes to the stamp duty last December.
The revised scheme is to have a progressive taxation system in Scotland. There will be no tax levied on properties bought up to £145,000, which the threshold was lifted by £10,000. A two per cent will be charged on properties worth between £145,001 and £250,000, while a new band of 5 per cent will be imposed on properties worth between £250,001 and £325,000, as opposed to a 10 per cent as previously planned. However, do expect a 12 per cent marginal rate on properties costing more than £750,000, rather than £1 million.
It still represents quite a jump for threshold of £325,000 which the entry price of a standard three-bedroom family home hovers around £325,000 in parts of Edinburgh, Aberdeen and Glasgow. Affected Scots buyers would face an LBTT bill of £12,300 from April, while in England the Stamp Duty would be £7,500.
This revision means there isn’t much of a comprehensive coverage, but it does minimize the number of buyers affected. It represents a small, yet meaningful step toward a right mix of balance it requires.
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