The new Land and Buildings Transaction Tax, replacing Stamp Duty in April 2015 in Scotland, introduces further uncertainty to the marketplace and will have a significant impact – particularly in the Capital.
Karen Turner, property sales director, predicts there will be a short-term surge in higher end properties entering the marketplace in the coming months.
The new taxing system will have the biggest impact on properties priced from around £325,000. This is likely to lead buyers and sellers looking to secure deals sooner rather than later to avoid paying increased levels.
Karen said: “This new tax is certainly far less clear cut than the previous system and is likely to cause confusion and disruption for buyers and sellers.
“As the leap from 2% to 10% only applies to the value over £250,000, the impact will be felt from around £325,000 affecting those in the family home sector.
“There is some good news for those purchasing a property below £250,000 as the 2% tax is only paid to the proportion of the value priced above the £135,000 threshold. This may benefit Edinburgh’s market for flats. Some parts of the country will benefit as the values of house sales are lower but in the Capital the average house price is relatively high.
“The new tax level comes at a time when the Scottish property market is slowly recovering from the impact of the referendum and causes further uncertainty.”
The Land and Buildings Tax was announced in the Scottish Government Budget on 09/10/2014.
If you are considering moving and are unsure about how this new tax may affect you, get in touch with one of our property experts in your area for more information.