The costs of moving home

Cruden - The costs of moving home

Land and Buildings Transaction Tax (LBTT) 

LBTT replaced UK Stamp Duty Land Tax (SDLT) in Scotland on April 2015. LBTT is a progressive tax that’s payable on all property purchases over a certain price threshold.

The starting threshold for Land and Buildings Transaction Tax for residential properties in Scotland will be raised from £145,000 to £250,000 from 15 July 2020 and remain in place until 31 March 2021

The table below outlines the current thresholds.

Purchase price of property Rate of LBTT (%)
£0 - £250,000      0%
Above £250,000 - £325,000 5%
Above £325,000 - £750,000  10%
Over £750,000   12%

 

Take a look at this example to see how it works:

Property price: £280,000 

Threshold 1: £0 - £250,000 – 0% tax is charged, meaning the total paid for this portion of the purchase price = £250,000

Threshold 2: £250,000 - £325,000 – 5% (£1,500) tax must be paid on the final £30,000 of the property price.

Total LBTT paid = £1,500

Total = £281,500

Moveable property is not usually included within chargeable consideration. Moveable property includes things like fixtures and fittings e.g. Curtains and furniture. 

Please visit www.revenue.scot for the most up to date information available or ask your sales advisor.
 

Finding a mortgage

There are many different types of mortgages available from a wide variety of lenders, including banks and building societies.

All financial representatives are required to provide best advice in relation to your loan. They operate under the regulation of the Financial Conduct Authority (FCA), whether independent or tied to a particular lender.

How much your mortgage will cost you each month is entirely dependent on what mortgage you choose. That’s why it’s important that you find the one that’s right for you. 

If you are unsure of how to seek financial advice, one of our sales advisors will assist you in finding an independent financial advisor or mortgage broker.