Tax Cut Announced For Scottish Home Buyers

Scotland Moving To Phase 3 Of Easing Lockdown Restrictions
Face Coverings Now Compulsory In Scotland’s Shops

Tax Cut Announced For Scottish Home Buyers

Scottish Finance Secretary Kate Forbes has announced a temporary cut to the transaction tax on house sales and extra support for first-time buyers.

The starting point for land and buildings transaction tax (LBTT) is to rise from £145,000 to £250,000.

Ms Forbes said this meant eight out of 10 house sales in Scotland would be exempt from the tax.

The move follows in the footsteps of a stamp duty holiday on transactions in England and Northern Ireland.

The change will not come into force immediately for “administrative reasons”, although Ms Forbes said it would be implemented “as soon as possible”.

The government is also to spend an extra £50m on the “first home fund” scheme which helps first-time buyers with their purchases.

Commenting on the proposals, Gavin McDonagh, President of Inverclyde Chamber of Commerce said:

“We welcome the Finance Secretary Kate Forbes’ announcement that the threshold for the application of LBTT will rise to £250,000 which means that eight out of 10 transactions won’t be charged.

“This will not only boost the housing market it will also support the construction industry, both of which are essential to addressing Scotland’s chronic housing shortage.

“We ask that this should be urgently fast-tracked to prevent distortion in the marketplace and hope this adds a further boost to Inverclyde’s population aims.”

Leave a Reply