New rates have been announced for the Land & Building Transactions Tax that will come into effect in Scotland from April this year.
The new rates will mean that anyone buying a home in Scotland for £325,000 or less will pay less in tax than they would elsewhere in the UK. Those buying property in Scotland above that price will pay progressively more tax in Scotland than they would in the rest of the UK (see table).
Stamp Duty reform in the Chancellor of the Exchequer’s Autumn Statement had made the previous rates (see here) look high compared to their UK equivalents. The new rates announced by John Swinney yesterday effectively restore the original position in which anyone buying in Scotland for £325,000 or less would pay less tax than buyers in other parts of the UK. But the difference is not huge, a maximum of £400.
At the other end of the spectrum, buyers of properties over £500,000 or so will pay substantially more tax in Scotland than elsewhere in the UK.