Deputy First Minister and Cabinet Secretary for Finance, John Swinney, has announced revisions to the proposed rates and bands for residential tax rates of the Scottish Land and Buildings Transaction Tax (LBTT).
The new proposals are:
• The threshold of liability for LBTT will be increased to £145,000;
• A rate of 2% will apply to the amount paid over £145,000 and below £250,000;
• A rate of 5% will be applied to the amount paid over £250,000 and below £325,000;
• Between £325,000 and £750,000 the rate to be applied will be 10%
• The top rate of 12% will be applied to any amount above £750,000.
The tax, along with the Scottish Landfill Tax (SLfT), will be the first set in Scotland for more than 300 years. Both taxes will be administered by Revenue Scotland.
For full details of the revisions, and to see how they could affect transactions, see our calculating tax page.
The Scottish Government will seek Parliament’s approval of formal rate-setting Orders, which will be laid in early February.