First-time buyers will be helped to purchase their first home through a new tax relief which came into force at the end of June.
Around 80% of first-time buyers will pay no tax after the Land and Buildings Transaction Tax (LBTT) First Time Buyer relief came into effect. The change sees the zero-rated LBTT threshold raised from £145,000 to £175,000 for first-time buyers.
So what will this mean in practice?
Homeowners purchasing property at a higher value will have their tax reduced by £600, which the Scottish Government claims will benefit around 12,000 first-time buyers each year.
Kate Forbes, Minister for Public Finance and Digital Economy said, “From today (30 June 2018), around 80% of first-time buyers will pay no LBTT, helping thousands of people 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.”
The commitment to introduce a first-time buyer LBTT relief was announced in the 2018/19 draft budget.
Over three quarters (76%) of those supported into homeownership by the Help to Buy (Scotland) and LIFT (Low-Cost Initiative for First Time Buyers) schemes are young people aged 35 and under.
Recent figures show that the number of young people aged 30 and under supported via Help to Buy (Scotland) increased from 50% to 55% in 2016/17.
For more information on what this could mean for you, please contact the Stephen sales office on (telephone) 01738 620721 or email sales@stephen.co.uk.
