Around 80% of first time home-buyers in Scotland are set to pay no tax on their purchase following the introduction of a new relief on 30 June, the Scottish government has said.
The land and buildings transaction tax (LBTT) first time buyer relief sees the zero-rated LBTT threshold raised from £145,000 to £175,000 for first-time buyers. Those purchasing property at a higher value will have their tax reduced by £600, meaning that around 12,000 first-time buyers will benefit each year, according to estimates from the Scottish Fiscal Commission.
Kate Forbes, minister designate for public finance and digital economy, said: “Around 80% of first-time buyers will pay no LBTT, helping thousands of people across the country buy their first home.
“Our progressive approach to the setting of LBTT rates and bands prioritises support for first-time buyers and helps others as they move through the market.
“Alongside our shared equity schemes, the introduction of this new relief provides further support to first-time buyers and delivers on the commitment made by the Scottish government as part of the 2018/19 Scottish budget.”