Scottish LBTT Additional Dwelling Supplement increase to 4%

Scottish LBTT Additional Dwelling Supplement increase to 4%

9:52 AM, 13th December 2018, About 3 years ago 17

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The Scottish government has announced in its recent budget that it will be increasing the Land and Building Transactions tax (LBTT) additional dwelling supplement to 4% from 3%. This will hit any additional landlord or second home purchases and if approved by the Scottish Parliament will be effective from the 25th January 2019.

However, any property purchase contracted into before the announcement in the budget will be exempt from the increase.

Scottish Finance Secretary, Derek Mackay, indicated that the increase was part of a government drive to support first-time buyers and assist people as they move up the property ladder.

The projected increase in forecast tax revenue is £2.3m in 2018/19 rising to £25.4m in 2019/20. However, it is unclear if this takes into account a subsequent decrease in the number of transactions caused by the increase in costs.

This then begs the question of how much longer before this is copied for the rest of the UK?



Comments

by AA

16:04 PM, 16th December 2018, About 3 years ago

Reply to the comment left by Arnie Newington at 16/12/2018 - 15:13
Can you explain ? I did not know this. How is it some have a status as University letting agents ?

by Grumpy Doug

17:11 PM, 16th December 2018, About 3 years ago

Reply to the comment left by AA at 16/12/2018 - 16:04
We have the same down here in Bournemouth. The university letting service rents out private rental houses as if they are "halls of residence" and therefore they have a different status. Totally nonsensical but there you go - strange times.

by user_ 8640

17:11 PM, 16th December 2018, About 3 years ago

Obfuscated Data

by user_ 8640

10:35 AM, 17th December 2018, About 3 years ago

Obfuscated Data

by Janet Carnochan

10:47 AM, 17th December 2018, About 3 years ago

Reply to the comment left by I get paid 125K working for Shelter and this is me laughing all the way to the bank! at 17/12/2018 - 10:35
Snap. Don't you just love the Scottish Government!!!!! I will join you living the high life for a year or so then we can explore the state funded option. The SNP will then value our opinion.

by Donald Tramp

10:56 AM, 17th December 2018, About 3 years ago

Using my hard earned cash to buy votes

by Jireh Homes

12:51 PM, 17th December 2018, About 3 years ago

Another nail in the coffin for the Private Landlord with property in Scotland, reinforcing the inferred campaign against the PRS. This hike in LBTT to 4% is a clear message to discourage any landlord considering entering the PRS or building on an existing portfolio, and with the recent change in PRT Lease and pending MEES is pushing landlords to offload their properties. This may all be deliberate policy to increase the pool of homes available for purchase by owner-occupiers but will in time reduce the availability of properties for rent and disadvantage those who choose or are unable to buy their own homes.


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