Stamp Duty Changes in Scotland

Stamp Duty changes in Scotland take effect from Spring 2015.

The implementation is on 01 April 2015, although Revenue Scotland, who will be administering it, will be live from January.

What is the change?

Stamp Duty Land Tax will be replaced by Land & Buildings Transaction Tax for transactions affecting Scottish properties.

The concept is basically the same as the recent change to Stamp Duty, being graduated percentage rates rather than flat percentages depending on the price.

The bands

For residential properties –

  • Transactions under £135,000 are exempt
  • 2% is charged that part of the price between £135,000 and £250,000
  • 10% is charged that part of the price between £250,000 and £1,000,000
  • 12% is charged on that part of the price over £1,000,000

Some examples

It’s probably easier to understand with a few examples, so here we go –

  • Purchase price £125,000 = £0 LBTT
  • Purchase price £140,000 = £100 LBTT
  • Purchase price £260,000 =£3,300 LBTT
  • Purchase price £350,000 = £12,300 LBTT

Commercial properties and leases

Commercial properties and leases have different rates and as with all tax rules there are exemptions and adjustments.

Helpful links

The Scottish Government website has further details as does the Revenue Scotland website, which also has a calculator.

Interim position

The recent change to Stamp Duty Land Tax, which will apply in Scotland until 31 March 2015 is (for residential purchases) no tax will be paid on the first £125,000 of a property, followed by 2% on the portion up to £250,000, 5% on the portion between £250,000 and £925,000, 10% on the next portion up to £1.5 million and 12% on everything over that.

How we can help

If you have any questions about property purchase, sale or rental, whether residential or commercial, feel free to contact one of our solicitors on 01343 544077 or send us a Free Online Enquiry.

All initial enquiries are free of charge and without obligation.