Tax break for first-time buyers
First-time buyers now enjoy a tax break not available to home movers. On 30th June 2018 the terms of the Land & Buildings Transaction Tax (First-time Buyer Relief) (Scotland) Order 2018 came into effect. This had the effect of increasing the price level at which Land & Buildings Transaction Tax will be paid for first-time buyers.
Before this order came into being, anyone buying a house for more than £145,000 would pay Land & Buildings Transaction Tax whether you were a first-time buyer or not. Since 30 June 2018 this level has risen to £175,000. That means if you’re a first-time buyer you won’t have to pay Land & Buildings Transaction Tax if you buy a property up to that price.
The Finance Secretary has estimated that this new tax break will take around 80% of first-time buyers out of tax. He also said that he expects this new tax break will help around 12,000 home buyers each year.
The scheme is administered by Revenue Scotland and the relief will apply to any purchase where the date of entry is after 30th June 2018 and where the contract to buy (Missives) was entered into on or after 9th February 2018. To find out how much tax you will have to pay on your purchase, you can use the LBTT Calculator on the Revenue Scotland website. You can do that by clicking here.
If you need any help with your house purchase or any aspect or property law, please get in touch with us.