Land and Buildings Transactions Tax - Extra help for first time buyers
The Scottish Government recently introduced a new relief for first-time buyers to help reduce the Land and Buildings Transactions Tax (LBTT) due when they purchase their first home.
The new relief applies to house purchases taking place on or after 30th June 2018 and is available to first-time buyers who are buying a dwelling which they intend to occupy as their main residence - so it won’t be available for second homes or buy-to-let properties. It effectively extends the nil rate band from £145,000 to £175,000 - giving the potential for first time buyers to save up to £600 of LBTT.
The definition of first-time buyer means that the new relief will only be available to buyers who do not own, and who have not previously owned, a dwelling - whether in Scotland or anywhere else in the world.
In the case of joint purchasers, if any of them have ever owned an interest in a dwelling then none of the joint purchasers will be eligible for the new relief.
In addition, it will not be possible to claim the new relief where the property purchase is liable for the 3% Additional Dwelling Supplement charge.
Our Residential Property and Tax teams are happy to assist with any questions you have on buying your first home.Back to news list