Extra stamp duty in Scotland

Flix21

Hi everyone

Apologies if this has already been discussed. I had a quick search but couldn’t find anything.

As the title suggests, I live in Scotland. Myself and my partner bought our first place about 5 year’s ago. In the next year or two, we were looking to move from a flat to a house having now saved some extra cash between us.

However, having not been paying attention to the housing market I didn’t realise we now pay a higher rate of stamp duty - or LLBT as it’s called.

For the house we want, we’d be looking between 400-500k which means compared to our English neighbours we’d be paying a hella lot more in taxes! I know some would say, boo-hoo buy a cheaper house but that’s the market for the area we want to live.

Now we’re considering staying put. I also saw it was proposed by the Tories (not sure if this is still the case?) of scrapping stamp duty altogether for houses below 500k. If they came into government and that came into fruition I do wonder if that would have a big influence on the Scottish housing market - as it wouldn’t take effect here.

Just wondered what everyone else’s thoughts were on this? Does it make others reconsider moving to save the cash? Do you think this could effect the Scottish housing market negatively?

scotland:
Up to 140k - 0%
140k to 250k - 2%
250k to 325k - 5%
350k to 750k -10%
750k and over 12%

davidmcn

Flix21 wrote: »

or LLBT as it’s called.

Or LBTT as it's called, if you know how to spell it

As for the rest of it, I doubt any significant number of people decide which country to buy a house in depending on slightly different rates of tax.

The rates aren't dramatically different at the moment (for £400k, it's £10000 in England vs £13350 in Scotland). What a future Westminster (or Holyrood) government does is anybody's guess, but I suspect there are other spending priorities at the moment.

[Deleted User]

Flix21 wrote: »

Hi everyone

Apologies if this has already been discussed. I had a quick search but couldn’t find anything.

As the title suggests, I live in Scotland. Myself and my partner bought our first place about 5 year’s ago. In the next year or two, we were looking to move from a flat to a house having now saved some extra cash between us.

However, having not been paying attention to the housing market I didn’t realise we now pay a higher rate of stamp duty - or LLBT as it’s called.

For the house we want, we’d be looking between 400-500k which means compared to our English neighbours we’d be paying a hella lot more in taxes! I know some would say, boo-hoo buy a cheaper house but that’s the market for the area we want to live.

Now we’re considering staying put. I also saw it was proposed by the Tories (not sure if this is still the case?) of scrapping stamp duty altogether for houses below 500k. If they came into government and that came into fruition I do wonder if that would have a big influence on the Scottish housing market - as it wouldn’t take effect here.

Just wondered what everyone else’s thoughts were on this? Does it make others reconsider moving to save the cash? Do you think this could effect the Scottish housing market negatively?

scotland:
Up to 140k - 0%
140k to 250k - 2%
250k to 325k - 5%
350k to 750k -10%
750k and over 12%

Let's hope you sell the flat before or simultaneously when buying the house otherwise you'll have the Additional Dwelling Supplement (an extra 4%) to pay on top as well. Although you will have 18 months to sell the flat and claim the ADS back.

I can't see what Westminster does with SDLT having much of an impact on LBTT rates. Look at income tax, Westminster increases the threshold for higher rate tax payers and Holyrood not only lowers it but increases the rate as well.

Anyway, this is veering into Debate House Prices and the Economy territory. If you have to spend £400k to £500k to buy the house you want in the area you want then do it and suck up the LBTT that goes along with it. Remaining in your flat when you really want to be in a house isn't going to achieve anything.