LBTT First-Time Buyer Relief
The Draft Budget 2018-19 announced that the Scottish Government will introduce a new LBTT relief for first-time buyers of properties up to £175,000. Alongside measures to increase housing supply, this will provide further support to first-time buyers in Scotland, helping make home ownership a reality.
The relief raises the zero tax threshold for first-time buyers from £145,000 to £175,000, so around 80 per cent of first-time buyers in Scotland will pay no LBTT at all. Those first-time buyers buying a property above £175,000 will also benefit from the relief on the portion of the price below the threshold, which means all first-time buyers will benefit from the relief by up to £600.
The Scottish Government will launch a consultation on the policy in January 2018 before introducing secondary legislation. We aim to get the relief into force from June 2018.
Please also see the Scottish Fiscal Commission's forecast report (annex).