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.

This means you pay a different rate depending on the value of the home. If the purchase price is above £145,000, LBTT is charged at the appropriate rate based on the amount of the chargeable consideration within the relevant thresholds.

The table below outlines the current thresholds.

Purchase price of property Rate of LBTT (%)
£0 - £145,000      0%
Above £145,000 - £250,000 2%
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 - £145,000 – 0% tax is charged, meaning the total paid for this portion of the purchase price = £145,000

Threshold 2: £145,000 - £250,000 – 2% (£2,100) tax for the next £105,000 

Threshold 3: £250,000 - £325,000 – 5% (£1,500) tax must be paid on the final £30,000 of the property price.

Total LBTT paid = £3,600

Total = £283,600

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

The Scottish Government plans to introduce a new relief on LBTT for first-time buyers in Scotland later in 2018, which increases the zero-rate threshold from the current level of £145,000 to £175,000.

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 dependant 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.