New property tax rates to be announced today

Lawyers and accountants across Scotland are eagerly awaiting clarification on new tax rates which will be announced today that will impact on property purchases next year.

Today the Scottish Parliament will clarify as part of the Budget announcement the rates of the new Land and Building Transaction Tax (LBTT) to be introduced from April 2015.  The new LBTT will apply to both residential and commercial property purchases and leases and will replace Stamp Duty Land Tax.

Early indications have hinted that it is going to be a progressive tax rather than a flat rate based on purchase price bandings, however the level of rates are to be announced in full today providing much needed certainty for professionals advising clients.  Many commercial transactions require a contract to be concluded well in advance of a settlement date and many clients have had to enter into these contracts without knowing what level of tax they will pay when they complete the purchase next year.

I will update the website following the announcement of the proposed rates in terms of the Budget.  Watch this space ….

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