Property Tax Changes May Have Significant Impact on Scottish Market
CKD Galbraith responds to the proposed changes to the new Land and Building Transaction Tax (the replacement for Stamp Duty)
CKD Galbraith said the changes in Land and Buildings Transaction Tax announced today may have significant implications for the Scottish housing market.
John Bound, partner, said: "There are winners and losers amongst property buyers - and sellers.
"While there is good news for first time buyers and those at the lower end of the property market, transactions carried out at the mid to higher end will still trigger a significant tax bill. While there are savings for some on what was originally proposed by the Scottish Government there will be increases on what people have been paying to date."
"This will affect a large section of houses in the Scottish market and overall we estimate that there will be a slight devaluation in the property market and we expect that the new rates at the higher end of the market may well have an impact on house prices as purchasers and vendors factor the new rates into their price calculations."
"The message is there is every incentive for people buying a property above £325,000 to complete their purchase before April 1 when the new tax comes into effect."
For more information on the new system and to calculate how much tax you will be liable to pay under LBTT visit the Revenue Scotland website.