Property tax threshold for first time buyers in Scotland to be raised to £170,500
Property tax for first time buyers in Scotland looks set to be abolished for properties under £170,500 by the middle of 2018.
The Scottish Government has launched a consultation on the Land and Buildings Transaction Tax (LBTT) being exempt which will raise the zero tax threshold for first time buyers to £175,000 from the current £145,000.
Those buying their first property at above £175,000 will also benefit on the portion of the price between £145,000 and £175,000, according to the consultation that will run until 23 March 2018.
The Scottish Government plans to introduce the relief, following parliamentary scrutiny, in June of this year.
It is estimated that around 12,000 first time buyers will benefit from the relief each year by up to £600, with an estimated 80% 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,’ said Finance Secretary Derek Mackay.
‘Our approach to LBTT has helped take over 25,000 house purchases out of tax and has meant that 93% of home buyers have paid less tax compared to SDLT or no tax whatsoever,’ he pointed out.
‘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,’ he added.
Stamp duty, the property tax in England and Wales, has already been abolished for first time buyers where the price is below £300,000 and below £500,000 for London where prices are much higher than the rest of the UK.