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Middle Market to Benefit From Scottish Tax Change

Changes to the rate of property tax are expected to benefit Scottish middle market properties according to the National Association of Estate Agent’s Scotland.

The move comes following the proposals from the Scottish Government to change the way Stamp Duty works in the country. Under the new Land and Buildings Transaction Tax (LBTT) the zero threshold has been raised to £145,000 with 2% being paid between £145,000 and £250,000, and 5% of all those between £250,001 and £325,000.

The move will differ significantly from the UK system which see’s a 2% tax on all properties over £125,000.

Soften The Blow 

Matthew Gray, the National Association of Estate Agent’s Scotland believed that the move would benefit those in middle-priced property and it will soften the blow when buying a property between £250,000 and £325,000. He said “Some 90% of the market should benefit from the new tax, and will pay considerably less than the original Stamp Duty charges.

“When this new tax was announced in October 2014 anyone looking to sell a property above £250,000 was due to pay a brutal uplift of 10% of the difference between the thresholds.

“The new adjustment to Scottish property tax is a sensible alteration that will be welcomed by the market,”

He added: “What has been noticeable so far this year is the number of larger properties going onto the market at a typically unseasonable time.

“This is mostly to encourage would be purchasers to pay the full price for the property, rather than allowing them to consider reducing the offer to make up for the increase in LBTT.”

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If you require legal advice regarding buying or selling a property in the Glasgow area or across Scotland, contact us today using our online contact form.