The Land and Buildings Transaction Tax (additional amount: transactions relating to second homes etc.) (Scotland) Amendment Order 2024
Overview
The Land and Buildings Transaction Tax (additional amount: transactions relating to second homes etc.) (Scotland) Amendment Order 2024 (the Amendment Order) is a statutory instrument made by the Scottish Ministers under the Land and Buildings Transaction Tax (Scotland) Act 2013 (the LBTT Act). The Amendment Order amends the LBTT Act to increase the additional amount of LBTT payable on transactions involving certain types of residential property.
Key Changes
The Amendment Order makes the following key changes to the LBTT Act:
- The additional amount of LBTT payable on transactions involving a residential property that is not the individual’s only or main residence (i.e., a second home) will increase from 3% to 4% from 1 April 2025.
- The additional amount of LBTT payable on transactions involving a residential property that is acquired by a company or other non-natural person will also increase from 3% to 4% from 1 April 2025.
Purpose of the Changes
The purpose of the changes introduced by the Amendment Order is to increase the tax revenue generated from LBTT. The Scottish Government estimates that the changes will raise an additional £145 million over the next four years. This additional revenue will be used to support public services in Scotland.
Impact of the Changes
The changes introduced by the Amendment Order will have a significant impact on the cost of purchasing certain types of residential property in Scotland. For example, the purchase of a second home that is valued at £250,000 will now attract an additional amount of LBTT of £10,000, compared to £7,500 under the previous rules.
Transitional Provisions
The changes introduced by the Amendment Order will apply to transactions that complete on or after 1 April 2025. Transactions that complete before this date will be subject to the previous rules.
Conclusion
The Land and Buildings Transaction Tax (additional amount: transactions relating to second homes etc.) (Scotland) Amendment Order 2024 is a significant piece of legislation that will increase the cost of purchasing certain types of residential property in Scotland. The changes introduced by the Amendment Order are intended to increase tax revenue and support public services in Scotland.
The AI has provided us with the news.
I’ve asked Google Gemini the following question, and here’s its response.
UK New Legislation a new article on 2024-12-04 16:08 titled “The Land and Buildings Transaction Tax (additional amount: transactions relating to second homes etc.) (Scotland) Amendment Order 2024”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
102