Land and buildings transaction tax holiday ends

A temporary increase to the threshold for land and buildings transaction tax (LBTT) on residential properties in Scotland has come to an end as of 1 April 2021.

The threshold for LBTT had been increased to £250,000 during the pandemic, but has now returned to its previous level of £145,000.

This is despite extensions to holidays for the equivalent taxes on residential property purchases in the rest of the UK.

In Spring Budget 2021, the stamp duty land tax holiday for properties worth up to £500,000 in England and Northern Ireland was extended to 30 June.

The threshold will decrease to £250,000 between 1 July and 30 September, before returning to its original level of £125,000 on 1 October.

In Wales, the land transaction tax holiday on properties worth up to £250,000 was also extended to 30 June, after which it will revert to £180,000.

Scottish Finance Secretary Kate Forbes had faced increased pressure to extend LBTT since the extensions were announced for the rest of the UK.

Speaking on the BBC's Good Morning, Scotland radio programme last month, Forbes said the holiday was "intended to support the recovery of the residential property market this financial year" and "that has been achieved".

She added:

"Ultimately, when it comes to tax policy, I have choices and the number one ask from business was to extend the 100% relief for non-domestic rates - that's what I've done alongside freezing council tax to help households in need."

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