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Scottish Election Results – Policies Relating to Home-Buying
In the recent elections, the SNP won 63 seats, which wasn’t enough for a majority, but was still a significant victory for the party. The Conservatives came in second with 31 seats, with Labour trailing in third place with just 24 seats.
Here’s more details about the SNP’s policies relating to home-buying, and how they’ll affect your property purchases in the future.
Purchasing Property in Scotland Under the SNP
Of course, the most significant thing is that Scottish home-buyers will not face stamp duty taxes – which they would have been subjected to under Tory ruling. With all tax brackets now increased by 3% for those buying additional properties, this is good news for investors in Scotland, and saves them thousands in tax.
Instead, Scotland will continue to have the Land and Buildings Transactions Tax, which is proportionately based on the value of the property. For all houses costing £145,000 or under, there is no tax. Properties from £145,000 to £250,000 incur a 2% rate of tax, from £250,000 to £325,000 incur a 5% rate of tax, £325,000 to £750,000 a 10% rate of tax, and anything over this is charged at a 12% rate of tax.
Here’s how it works in reality. If a house of £280,000 is purchased, the buyer will be charged 0% against the first £145,000, then 2% for the next £105,000, then 5% for the final £30,000. This would make their total LBTT tax bill £3,600.
The SNP will also continue with the Additional Dwelling Supplement, which is 3% against any additional property purchase over £40,000.
However, with the SNP majority now lost, they will need support from other parties if they are to pass legislation. Thus we might see further changes to home-buying in the coming months.