What is it?
The Land and Buildings Transaction Tax (First-Time Buyer Relief) (Scotland) Order 2018 came into effect from Saturday 30th June 2018, introducing further changes to the LBTT regime in Scotland in order to assist first-time buyers of residential properties and provide them with tax relief, provided certain conditions are met.
Does it apply to me?
The relief applies to transactions concluded on or after 9 February 2018 and also where the entry date is on or after 30th June 2018. Any properties purchased prior 30th June will not therefore be eligible for the tax relief.
How much tax relief can I get?
The relief raises the tax threshold from £145,000 to £175,000, meaning you will not pay any LBTT on properties with a purchase price of £175,000 or less. In addition however, where you have otherwise satisfied the above criteria and you are purchasing a property with a price greater than £175,000, you will still not pay any tax on the first £175,000 of the purchase price, meaning you will under those circumstances receive tax relief of £600 deducted from your LBTT liability. For example, a purchase price of £175,001 for a residential property would result in a LBTT liability of £601. IF you qualify for the first-time buyer relief, your LBTT liability will be £1.
If you have any queries regarding the new LBTT first-time buyer relief and would like some further advice on how you are affected, please contact our Associate Director, Craig Smith on 01383 745776 or email@example.com.