The Scottish Budget 2021-2022 confirmed last week that the ceiling of the nil rate band for residential LBTT will return, as planned, to £145,000 for transactions, with an effective date after 31 March 2021. Finance Secretary Kate Forbes has however promised that relief for first-time buyers, which raises the nil rate band for LBTT to £175,000, has been extended.
LBTT was previously paid on properties valued at more than £145,000, but due to the COVID pandemic, the Scottish Government temporarily upped the threshold to £250,000 in July of last year.
This was always a temporary relief, however given the difficult and uncertain economic situation many of us are still facing, it was hoped that there would be a continuation of the property tax holiday. Extending LBTT relief would have provided more certainty for buyers and sellers as they head into spring.
However, with the current roll-out of the vaccination programme well underway we are now starting to see light at the end of the tunnel. Recent growth in the property market in Scotland has been strong and Rightmove has reported the busiest new year start ever.
At Macnabs we are currently working with a number of property buyers and sellers. We have many years of experience and expertise in all your legal property needs so If you are contemplating a sale or purchase then please get in touch and we can give you independent advice.