New Stamp Duty Land Tax Rates effective 1 April 2015
15 February 2015

With the rates of Stamp Duty Land Tax (SDLT) and Land and Buildings Transaction Tax (LBTT) having been amended by the UK and Scottish Governments respectively several times over the past few months, it can be difficult for purchasers of Scottish Property to keep track of how much tax they will be required to pay.

At present, purchasers in Scotland pay the same rate of SDLT as purchasers in the rest of the UK. However, that will change from 1st April 2015, when Scottish purchasers will, instead, attract payment of LBTT. Both taxes are “progressive” taxes, meaning that the rates increase for more expensive properties, but that you only pay the relevant rate of tax on that part of the purchase price that falls within each particular bracket (rather than paying the highest rate on the whole purchase price as used to be the case).

Where SDLT and LBTT differ, however, is in the rates payable in each band. The rates for residential purchases are:-

SDLT (until 31/3/15)

Price Band Tax Rate
0 – £125,000 0%
£125,000 – £250,000 2%
£250,000 – £925,000 5%
£925,000 – £1.5M 10%
Above £1.5M 12%

 

LBTT (from 1/4/14)

Price Band Tax Rate
0 – £145,000 0%
£145,000 – £250,000 2%
£250,000 – £325,000 5%
£325,000 – £750,000 10%
Above £750,000 12%

 

The following table shows the amount of SDLT and LBTT payable for purchases at different prices

Purchase Price SDLT payable LBTT payable
£120,000 £0 £0
£140,000 £300 £0
£160,000 £700 £300
£200,000 £1,500 £1,100
£250,000 £2,500 £2,100
£300,000 £5,000 £4,600
£325,000 £6,250 £5,850
£350,000 £7,500 £8,350
£400,000 £10,000 £13,350
£500,000 £15,000 £23,350
£750,000 £27,500 £48,350
£925,000 £36,250 £69,350
£1M £43,750 £78,350
£1.5M £93,750 £138,350

 

Different rates of tax apply to non-residential and mixed purchases. For further information on this, or any other part of the conveyancing process, please contact any of our solicitors.