The End of Stamp Duty in Scotland?
If only!Â Under the Land and Buildings Transaction Tax (Scotland) Act which came into force on 31st July, 2013, the current UK tax on land and property transactions (SDLT) will no longer apply in Scotland from April, 2015. It will be replaced by the Land and Buildings Transaction Tax (LBTT). Apart from having a comparatively unmemorable and indigestible name, it will be different to stamp duty in one important way.
Stamp duty applies once a price threshold is achieved and then applies to the whole price of the property (not just the price over and above the threshold). LBTT will be a progressive tax whereby slices of the price will be charged at different rates. Rates will not be set until nearer the time. It is considered that most of the reliefs and exemptions under LBTT will be the same as those under SDLT. Of administrative interest, a new body called Revenue Scotland is being set up to manage the system.