- Name
Stamp Duty as a term is often used generically in the UK, but to be exact it only refers to the property tax in England in Northern Ireland. In Scotland the equivalent tax is called Land and Buildings Transaction Tax (LBTT) with Additional Dwelling Supplement (ADS).
LBTT is the amount paid by way of tax to the government by buyers for purchasing property or land in Scotland. How much is paid depends on the amount paid for the property or land.
- Stamp Duty Holiday in Scotland
As with England and Wales, the government has reduced the amount of LBTT to pay if buying a property in Scotland before 31 March 2021. This is to stimulate the property market. It was believed that the housing market may drastically start to fall after the first lockdown which would have a knock on effect for the wider economy. In actuality, house prices really started rising after the first lockdown.
Although the commonly used expression is ‘stamp duty holiday’, it does not in fact mean that there is no LBTT to pay for a certain period. It means instead that rates have been reduced in Scotland until 31 March 2021.
The UK is just to go into a second lockdown, which again will freeze the property sector, this time for a month. It remains to be seen if this stamp duty holiday (in fact a reduction) period will continue.
- Current Land and Buildings Transaction Tax Rates
The current rates for LBTT are as set out in the table below. These rates will change after 31 March 2021 if the stamp duty holiday is not extended.
| Single Property | Additional Property
|
|
| Up to £250,000 | 0% | 4% |
| £250,001 to £325,000 | 5% | 9% |
| £325,001 to £750,000 | 10% | 14% |
| The remaining amount | 12% | 16% |
|
No stamp duty is payable if the property is less than £40,000.
|
- How do the LBTT rates compare to the rest of the UK?
The LBTT rates in Scotland are higher than in England, Northern Ireland and Wales. None of the other taxes have a 16% rate. The thresholds where you pay the next higher rate are also lower in Scotland, meaning you pay higher rates earlier. For example in England, single property buyers do not pay stamp duty until they buy a property over £500,000. In Scotland, LBTT is due for properties over £250,000.
If you would like to sell your property fast to buy one in Scotland, please contact Quick Property Buyer which as the name suggests buys properties quickly.