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Glasgow
+44 (0)141 221 2984

Edinburgh
+44 (0)131 225 6366

Stirling
+44 (0)1786 451745

Dumbarton
+44 (0)1389 765238

Hamilton
+44 (0)1698 459444

French Duncan

APRIL 2015 - New Land & Buildings Transaction Tax introduced

The rules for SDLT changed on 4 December 2014.  Under the old rules if you bought a house is you bought a house for £200,000, you would pay tax at 1% on the full amount (i.e. £2,000).  Under the new rules, for the same property you will pay nothing on the first £125,000 and 2% on the remaining £75,000 (i.e. £1,500).  A saving of £500.

From 1 April 2015 Land and Building Transaction Tax (LBTT) will replace SDLT in Scotland.  Based on the example above, under LBTT the total tax due would be £1,100.  An additional saving of £400 on the new SDLT rates.  The rates shown below for LBTT are different to what was originally announced in October and will be a welcome relief to individual as the new rates for the LBTT system make it more proportionate across the property bands.  Under the old LBTT system, it would have cost more to buy a property valued over £250,000, in comparison to the SDLT system.  However, under the new LBTT rates this property value has increased to £325,000.

LBTT Table 600Px

*pre 04/12/14 SDLT is taxed on full value at a single rate. Post 04/12/14 SDLT & LBTT will be a progressive tax where it will be taxed at an increasing rate for each portion of the price.