"I had Kyle & Andy help me pickup and transport a piece of art from London I was thrilled to see how passionate the pair are about their work and eager to please,the item was well protected with their bubble wrap and strapped to the inside of their van so it couldn't move. They even put it on the wall for me as well. Will not hesitate to use Caledonia Removals again delighted with their efforts."
As England and Northern Ireland had their 'Stamp Duty holiday', the Scottish Government similarly announced a raising of the nil Land and Building Transaction Tax (LBTT) threshold to £250,000. This resulted in any first-time buyer purchasing property under this value not paying the added tax.
However, this tax holiday ended in Scotland on 31 March 2021, dropping the threshold back to £145,000.
But this doesn't mean that first-time buyers still can't benefit. In Scotland, first-time buyers can save due to a £175,000 nil tax threshold, as was the case before July 2021 when the tax holiday began, or if moving to England, benefit from the extension to their stamp duty freeze, which was extended until the end of June.
So if you're looking to relocate, now may be the time, and if you need help with all the heavy lifting, just give us a call.
What is Land and Building Transaction Tax?
LBTT is Scotland's equivalent to stamp duty, the tax applied to the purchase of any residential and commercial property.
How much is Land and Building Transaction Tax in Scotland?
As with stamp duty, the amount of LBTT for a residential property transaction is dependent on the price it is sold for. LBTT comes with several bands, each a different tax percentage, which will be applied to a property purchase.
Transactions outside of the ‘tax holiday’ (For prior to 15 July 2020 and after 31 March 2021)
|
|
|
|
|
|
|
|
|
|
|
|
Transactions ‘during tax holiday’ (15 July 2020 to 31 March 2021)
|
|
|
|
|
|
|
|
|
|
|
|
How does the change in Land and Building Transaction Tax affect first-time buyers?
Before the changes introduced in July 2020, any first-time buyer would have benefited from 0% LBTT for properties with a cost of up to £175,000 instead of £145,000.
This has become the case again since the end of March 2021, meaning first-time buyers can still save an additional £600 compared to others.
However, until the end of June, for first-time buyers moving to England or Northern Ireland, stamp duty relief could mean significant savings with the threshold in those countries still increased to £500,000