Both the UK and Scottish Governments have introduced changes to the way tax is levied on house purchase transactions.
Doing away with the tiered system where buyers paid a flat rate of tax depending on which bracket the purchase fell into, there is now a ‘progressive’ scale which applies to all purchases.
All house buyers will pay 0% tax on the first portion of the house price – up to £145k in Scotland and £125k in the rest of the UK.
A levy of 2% is then made on the next portion up to £250,000 and a 5% rate applying to the next portion.
The rates increase up 12% on the most expensive properties as per the following table:-
|£0 – £125k||0%||£0 – £145k||0%|
|£125 – £250k||2%||£145k – £250k||2%|
|£250K- £925k||5%||£250k – £325k||5%|
|£925 – £1.5m||10%||£325k – 750k||10%|
|£1.5m +||12%||£750 +||12%|
Calculate your tax
Both HMRC and Revenue Scotland have produced online tax calculators to allow you to see how the changes may affect you. Click the links below.