Stamp Duty Land Tax

Stamp Duty Land Tax

The Scottish government announced on October 9th 2014, that from April 1st 2015, Stamp Duty Land Tax (SDLT) will be replaced by the Land and Buildings Transaction Tax (LBTT). The proposal is subject to the Scottish Parliament’s approval in early 2015. The Scottish government expects the change to be neutral in terms of total tax generated.

LBTT rates are as follows:

Up to £135,000                    0%

£135,001 – £250,000          2%

£250,001 – £1,000,000       10%

Above £1,000,000               12%

Of course, with any tax change there are winners and losers.  The table below shows that anyone buying property up to a value of £325,000 will be better off with the new LBTT.

If you are buying property above that value will have a relatively greater tax liability. So for example if you are buying a property for £275,000, you will pay £3450 tax less after April 1. On the other hand if you are buying a property for £500,000, you relative tax liability will be £12,300 more.

 

Price Existing SDLT Proposed LBTT Difference
£100,000 £0 £0 £0
£125,001 £0 £0 £0
£135,000 £1,350 £0 £1,350
£150,000 £1,500 £300 £1,200
£175,000 £1,750 £800 £950
£200,000 £2,000 £1,300 £700
£225,000 £2,250 £1,800 £450
£250,000 £2,500 £2,300 £200
£250,001 £7,500 £2,300 £5,200
£275,000 £8,250 £4,800 £3,450
£300,000 £9,000 £7,300 £1,700
£325,000 £9,750 £9,800 -£50
£350,000 £10,500 £12,300 -£1,800
£400,000 £12,000 £17,300 -£5,300
£450,000 £13,500 £22,300 -£8,800
£500,000 £15,000 £27,300 -£12,300
£500,001 £20,000 £27,300 -£7,300
£600,000 £24,000 £37,300 -£13,300
£700,000 £28,000 £47,300 -£19,300
£800,000 £32,000 £57,300 -£25,300
£900,000 £36,000 £67,300 -£31,300
£1,000,000 £40,000 £77,300 -£37,300