Homebuyers in Scotland who are planning a big move in 2015 should take into account the new Stamp Duty rules which come into effect at the end of March.
Any purchases which complete after 1st April will be assessed under the Scottish Governnment’s new Land and Buildings Transaction Tax which will be higher than the existing rates where the price is over £275,000.
The difference ranges from £1000 to £12,300 depending on the price. The Glasgow Law Practice has prepared a table showing a breakdown of the additional tax payable by the purchaser.
As conveyancing transactions typically take between two and three months to complete, early offers for properties currently on the market could result in substantial savings.
Robert Fitzpatrick, senior director, said: “If you can complete a purchase of a higher value property on or prior 30th March then it would make a lot of financial sense indeed. Whilst the Scottish system is undoubtedly a little kinder to those buying up to £250,000, there is no doubt that above £250,000 things take a turn for the worse very quickly indeed.”
| Price |
UK Stamp Duty | Scottish LBTT |
“Saving” |
| £250,000 | £2,500 | £2,300 | -£200 |
| £275,000 | £3750 | £4,800 | £1,050 |
| £300,000 | £5,000 | £7,300 | £2,300 |
| £325,000 | £6,250 | £9,800 | £3,550 |
| £350,000 | £7,500 | £12,300 | £4,800 |
| £375,000 | £8,750 | £14,800 | £6,050 |
| £400,000 | £10,000 | £17,300 | £7,300 |
| £425,000 | £11,250 | £19,800 | £8,550 |
| £450,000 | £12,500 | £22,300 | £9,800 |
| £475,000 | £13,750 | £24,800 | £11,050 |
| £500,000 | £15,000 | £27,300 | £12,300 |
If there is any prospect of your transaction completing prior to 30th March or you wish to discuss any matter please don’t hesitate to contact our conveyancing team on 0141 779 4466.
