Scottish Government to consult on LBTT relief for first time buyers

The Scottish Government have announced that they are to consult on Land and Buildings Transaction Tax (LBTT) exemption for first time buyers on properties under £175,000.

With the announcement of a First Time Buyer’s Relief in the 2018/19 Scottish Budget on the 14 December 2017, the Cabinet Secretary for Finance and the Constitution, Derek Mackay MSP, committed to launch a consultation on the policy before introducing the first time buyer relief in 2018-19.

Alongside measures to increase housing supply, this relief will provide further support to first time buyers in Scotland, helping them get on to the property ladder.

The move is expected to benefit around 12,000 first time buyers each year by up to £600, with an estimated 80 per cent of all first time buyers paying no LBTT at all.

The Scottish Government’s intention to introduce a first time buyers relief for Land and Buildings Transaction Tax, and the intended value of the relief for first time buyers, was announced as part of the draft Scottish Budget 2018/19 in December 2017.

Finance Secretary Derek Mackay said: “We are committed to helping as many people as possible to buy their first home. Since its introduction, LBTT has prioritised support for first time buyers and assisted people as they progress through the property market.

“Our approach to LBTT has helped take over 25,000 house purchases out of tax and has meant that 93 per cent of home buyers have paid less tax compared to SDLT or no tax whatsoever.”

Source: NAEA