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The rates and bands for residential property transactions subject to the Scottish land and buildings transaction tax have been revised, with an extra level added following advice from tax professionals. The new figures are set to apply from 1 April.
The rates and bands for residential property transactions subject to the Scottish land and buildings transaction tax have been revised, with an extra level added following advice from tax professionals. The new figures are set to apply from 1 April.
| Cost | Rate |
| Up to £145,000 | nil |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Over £750,000 | 12% |
Moira Kelly of the Chartered Institute of Taxation (CIOT) said the changes “bring the new system more closely into line with the Scottish government’s principle of a progressive tax system, with taxes being proportionate to a taxpayer’s ability to pay”.
The professional body had advised the finance committee of the Scottish parliament that there should not be a significant increase in the rate of tax from band to band.
“The original proposal included a huge leap from 2% to 10%, and had only three rates. The introduction of an additional band with a 5% rate provides for more progression and differentiation,” said Kelly, who chairs the CIOT’s Scottish technical sub-committee.
The new rates and bands are subject to parliamentary approval. The Scotland’s government will seek parliamentary approval of rate-setting orders, which will be laid in early February.
