Scotland is considering giving first time buyers relief or exemption from Land and Buildings Transaction Tax - the replacement for stamp duty north of the border.
The Scottish Government’s proposal, which has just gone out for formal consultation, effectively raises the zero-tax Land and Building Transaction Tax threshold for first-time buyers to £175,000.
Those buying their first property at above £175,000 will also benefit on the portion of the price between £145,000 and £175,000.
Around 12,000 first-time buyers will benefit from the relief each year by up to £600, with an estimated 80 per cent of all first-time buyers paying no LBTT at all.
“We are committed to helping as many people as possible to buy their first home. Since its introduction, LBTT has prioritised support for first-time buyers and assisted people as they progress through the property market” claims the Scottish Government’s finance secretary Derek Mackay.
“Our approach to LBTT has helped take over 25,000 house purchases out of tax and has meant that 93 per cent of home buyers have paid less tax compared to SDLT or no tax whatsoever.
“Alongside measures by the Scottish Government to increase housing supply, this will provide further support to first-time buyers in Scotland, helping them to own their own homes.”
The consultation will run until March 23, and you can see it here.
Although taking the first step onto the property ladder may seem scary, with a bit of forward planning, it needn’t be as daunting as you first thought.
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Credit: Estate Agent Today