Impact of the Budget on the property sector
In today's Budget announcement, Cabinet Secretary for Finance Kate Forbes MSP rejected calls for an extension to the current Land and Buildings Transaction Tax holiday (LBTT). Reiterating the scale of the impact of Coronavirus on the public purse, Forbes said that the holiday was always intended to be temporary and the nil rate band will return to £145,000 from April 1 2021.
First Time Buyer Relief will however continue, meaning that LBTT is not payable on the first £175,000 of the property price.
The Government will continue to monitor the property markets, announcing that the 4% Additional Dwelling Supplement will be consulted on in the next parliament.
Daryl McIntosh, Propertymark Strategic Development Manager for Scotland commented “We are disappointed that the Scottish Government has not backed the housing market in its Budget today. By not extending the LBTT holiday deadline beyond the 31st March as well as demonstrating a reluctance to redraw LBTT rates and bands, they have wasted the opportunity to help the market continue its recovery.
"Whilst it is welcome that First Time Buyer Relief will continue, it is disappointing that the Scottish Government were not more ambitious and failed to take the opportunity to bolster the First Home Fund."
If you have any questions regarding how much LBTT you may have to pay, or anything else property related, please feel free to get in touch with us at Scottish Property Centre.