Update on LBTT Changes in Scotland
Revenue Scotland have confirmed here:
that the revised bands for LBTT ie the increase from £175k to £250k for when LBTT kicks in will apply to transactions with an 'effective date' on or after 15 July 2020.
We have been asked by many clients if these changes will cover their transactions. In layman's terms the 'effective date' for a standard house sale/purchase is the date of settlement/entry that is the date the purchase price is paid by the buyer in exchange for your keys / the signed Disposition (document transferring title).
We are therefore of the view that ANY house purchase settling on or after Wednesday 15th July 2020 until 31st March 2021 will benefit from the upto £2,100 reduction in LBTT i.e. if you're buying at £250k or above you'll save this and if you're buying between £175k to £249,999 you'll save up to £2,100.
If you'd like to discuss your purchase options or how these changes may affect you please get in touch.