22 Dec How Will The Cut on Stamp Duty Affect First Time Buyers?
On the 14th of December, the Scottish Government announced their budget and it’s highly likely that everybody in Scotland will notice changes. Carry on reading to find out how the changes will affect housing in Scotland.
One of the most important changes announced by Derek Mackay (Finance Secretary) was that first-time buyers won’t have to pay LBTT (Land and Buildings Transactions Tax) on properties up to the value of £175K.
This follows on from the autumn UK budget announcement by Phillip Hammond (Chancellor) that the Stamp Duty Land tax would be done away with for all first-time buyers on properties up the to the value of £300K in England and Wales.
Derek Mackay also announced that as part of the support for housing, they were not just investing £3B over this parliament in order to increase supply of affordable housing, but also to provide additional support to help people get onto the property ladder.
Residential and non-residential rates for LBTT remain the same for all other buyers across Scotland.
The most significant change announced to the Scottish budget was the change to income tax, seeing a move to a five-band tax system. There is a new intermediate tax rate of 21p for earners between £24,001 to £44,273, while people earning £150,000 or more will pay an additional rate from £150,000. There is also a 1p rise to 41p for those earning between £44,274 to £150,000.
CEO of ESPC (Paul Hilton) said: “This saving on LBTT for first time buyers could be a really positive initiative to help give them a boost when it comes to buying a property. While the market has already seen two major LBTT changes in the last two years, this initiative could stimulate the market a little. However, we would welcome a wider consultation on LBTT and we would encourage the government to take a pragmatic view and consult with stakeholders about the ways the higher end of the market can be stimulated.”
If you are thinking of selling your property and need a Home Report carried out, give us a call on 0131 608 0175 to arrange an appointment to suit you.