A new tax break for first-time buyers became available on 30th June 2018. From that date, first-time buyers now enjoy additional Land & Buildings Transaction Tax (LBTT) Relief when purchasing their first home.
This change in the law, when buying a property, LBTT was due on any purchase of more than £145,000. It didn’t matter if you were a first-time buyer or not. Since 30th June 2018 that threshold for first-time buyers has now become £175.000. The Cabinet Secretary for Finance in the Scottish Government estimates that this relief will move 80% of first time buyers out of tax when they buy a house. He also estimates that this will help more than 12,000 purchasers every year.
Revenue Scotland will manage this new scheme This relief will apply to any transaction where the effective date (Date of Entry) is after 30th June 2018 and where the contract (“Missives”) was entered into on or after 9th February 2018.
If you want to find out how much tax you’ll pay on your purchase, visit the LBTT Calculator on the Revenue Scotland website by clicking here.