The Land and Buildings Transaction Tax (LBTT) replaces the UK Stamp Duty Land Tax, under new devolved powers contained in the Scotland Act 2012. It will be administered by Scotland's new tax collection agency, Revenue Scotland, with support from Registers of Scotland (RoS).
It is the first tax to be introduced by the Scottish Parliament in 300 years, along with a landfill tax, and is said to change the way people pay duty on house purchases. The new system will use a graduated tax rate, similar to that of income tax.
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The Scottish Government has said a majority of taxpayers will be better, or no worse off, under the new system. Under the new tax, properties worth up to £145,000 will not attract any tax, while tax of 2% will be applied to properties valued between £145,000 and £250,000. 5% will be introduced to properties between £250,000 and £325,000; and for those between £325,000 and £750,000, the marginal rate will be 10%. A maximum rate of 12% will apply to transactions above £750,000.
Deputy First Minister John Swinney said: "Today is historic. For the first time in 300 years, with the launch of Revenue Scotland, Scotland is able to collect and manage some of our own taxes.
"Our residential LBTT rates and bands, which were approved by the Scottish Parliament, mean that no tax will be payable on 50% of house purchases and more than 40,000 home buyers will pay less tax than they would under UK SDLT."
(JP)
