Stamp duty for first time buyers has been abolished for most purchasers.
Stamp duty for buy to let property has increased substantially from April 2016.
Stamp duty for second homes also attracts a 3 percent surcharge from April. Mobile homes, caravans and houseboats are exempt.
Stamp duty refunds are available for home movers replacing their main residence. The original home must be sold within 3 years.
The Scottish Goverment introduced LBTT first time buyer relief from June 2018.
LBTT first time buyer relief is now available to all first-time buyers who buy a home which they intend to occupy as their main residence. The relief is therefore only available for residential propery transactions.
By increasing the initial LBTT threshold for first time buyers to £175k, the Scottish Government predict the majority of first time buyer transactions will attract no tax.
First time purchases above £175k will also benefit from the first time buyers relief on the portion below the £175k threshold.
LBTT first time buyers relief thresholds and rates are shown in the table below.
|Tax Band||First Time Buyer Rate|
|less than £175k||0%|
|£175k to £250k||2%|
|£250k to £325k||5%|
|£325k to £750k||10%|
|rest over £750k||12%|
|The Scottish Government have introduced first time buyer relief from June 2018.|
A first time buyer is defined as individual who does not currently own, or has previously owned, a property in Scotland the rest of the UK, or anywhere else in the World.
Where a property is being purchased jointly, both parties will need to meet the relevant criteria to qualify for LBTT first time buyer relief.
If an individual inherits property, or has property gifted to them, this will be taken into consideration when assessing previous ownership status.
If someone owns as property as a Trustee or Executor, they are not considered to be an existing owner for the purpose of LBTT first time buyer relief.
First time buyers must be able to demonstrate that the property being puchased will be their main residence. Although it is not necessary to occupy the property immediately, the buyer must indicate a clear intention to do so in the future. This allows for renovation, structural or remedial work to be completed after purchase and before occupation.
LBTT first time buyer relief is not avaialble when a property is purchased for a purpose other than as a main residence, for example as a buy to let investment.
LBTT first time buyer relief must be claimed through Revenue Scotland, the tax authority for collection and management of Scotland's devolved taxes.
It is possible to claim the relief either when an LBTT return is first submitted, or as an amendment of that return. Claims can be made online or by completing a paper form.
The LBTT calculators below indicate how much tax will be payable for both previous home owners and first time buyers of freehold residential dwellings in Scotland.
Stamp duty calculations with new stamp duty thresholds. One ckick SDLT Calculations!
Following Changes in 2018, Land Transaction Tax (LTT) has replaced Stamp Duty in Wales.