What is Land and Buildings Transaction Tax (Stamp Duty)?
Stamp Duty holiday ends 31st March 2021
Make sure you allow enough time to complete your home purchase by 31st of March to take advantage of the Stamp Duty holiday. Start your mortgage application today
Different factors can influence whether you can complete your mortgage by the deadline. Local Authorities may require additional time to complete personal searches. Local authority turn around times (England and Wales only).
Land and Buildings Transaction Tax changes
In July 2020, the government announced a temporary increase to Land Tax thresholds (previously known as Stamp Duty in Scotland), meaning reduced rates of Land and Buildings Transaction Tax (LBTT) will apply on the purchase of residential properties until 31st March 2021.
You'll now pay LBTT if you're buying a house for over £250,000 in Scotland. In Wales, you'll pay Land Transaction Tax (LTT) on houses over £250,000 and Stamp Duty on houses over £500,000 in England or Northern Ireland. For more information on these changes, visit the Revenue Scotland website.
Costs for second home owners
If you're buying an additional residential property in Scotland, including rental properties, second homes and holiday homes, you may have to pay the Additional Dwelling Supplement. You'll pay this additional amount unless the main or second property costs less than £40,000.
How do I pay for LBBT?
With any big purchase, it's important to work out your budget. It's best not to borrow more money on your mortgage to cover LBTT, as this could affect your loan to value ratio.
It's a good idea to make sure you have the cash to pay for LBTT before you make an offer on a property. You can use our budget calculator to see how to cover this cost.
Your solicitor will usually calculate and collect the LBTT in advance, but it's legally the buyers' responsibility to make sure it's paid on time.