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New budget proposal impacts on homeowners

two house keyrings

In the latest Budget proposals the Scottish Government included a proposal to raise the additional dwelling supplement (ADS) rate from 3% of the price of a ‘second home’, to 4%.

If the proposal is ratified by the Scottish Parliament (as is anticipated) the rise will apply to all relevant transactions settling on or after 25th January 2019 except where missives were concluded before 12th December 2018. The 3% rate will still apply to those transactions.

No other changes affecting residential properties, and apart from the ADS rate rise that have been proposed there are no changes to threshold or reliefs.

So, as an example, for a homeowner buying a buy to let or second home in Scotland at £250k, the LBTT bill will rise from (£2100 (Standard LBTT) + £7500 (ADS) = £9600.00) to (£2100 (Standard LBTT) + £10000 (ADS)  = £12100.00).

For further information and advice, please contact a member of the residential property team.

Posted by Kenneth Thomson


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