MSE News

Homebuyers' transaction tax holiday extended in Wales but not in Scotland

Homebuyers' transaction tax holiday extended in Wales but not in Scotland

Homebuyers in Wales will continue to pay no transaction tax on properties purchased for up to £250,000 until 30 June - but the rates in Scotland will return to their usual level from 1 April.

Typically, buyers in Scotland pay land and buildings transaction tax (LBTT) – equivalent to stamp duty in England and Northern Ireland – on properties costing over £145,000. Those in Wales pay land transaction tax (LTT) on properties over £180,000.

Last July however, Scottish Finance Secretary Kate Forbes announced that this threshold would be raised to £250,000 for buyers in Scotland until 31 March 2021, while Welsh Finance Minister Rebecca Evans raised the Welsh threshold to the same level for the same period.

The stamp duty holiday in England and Northern Ireland was extended in yesterday's Budget until the end of June. Now, the Welsh Government has said its temporary increase to the nil rate band will also be extended to 30 June 2021. Yet the Scottish Government says it will go back to its standard rates from 1 April.

What is land transaction tax and how much does it cost?

This tax is referred to by different names depending on where you are – stamp duty in England and Northern Ireland, land and buildings transaction tax in Scotland and land transaction tax in Wales. But the basic principle is the same – it's a lump-sum tax that you pay when buying a property that's worth more than a certain amount.

The key differences are the thresholds, meaning you'll pay different rates depending on where you are.

Here's what you'll pay in Scotland

In Scotland at the moment you'll pay:

  • Nothing on properties up to £250,000
  • 5% on the portion of a property between £250,001 and £325,000. 
  • 10% on the portion of a property between £325,001 and £750,000. 
  • 12% on the portion of a property costing over £750,000.

From 1 April onwards you'll pay:

  • Nothing on properties purchased for up to £145,000 (this is raised to £175,000 for first-time buyers).
  • 2% on the portion of a property between £145,001 and £250,000. 
  • 5% on the portion of a property between £250,001 and £325,000. 
  • 10% on the portion of a property between £325,001 and £750,000. 
  • 12% on the portion of a property costing over £750,000.

Here's what you'll pay in Wales

In Wales at the moment you'll pay:

  • Nothing on properties up to £250,000.
  • 5% on the portion of a property between £250,001 and £400,000.
  • 7.5% on the portion of a property between £400,001 and £750,000.
  • 10% on the portion of a property between £750,001 and £1,500,000.
  • 12% on the portion of a property costing more than £1,500,000.

And from 1 July onwards you'll pay:

  • Nothing on properties purchased for up to £180,000.
  • 3.5% on the portion of a property between £180,001 and £250,000.
  • 5% on the portion of a property between £250,001 and £400,000.
  • 7.5% on the portion of a property between £400,001 and £750,000.
  • 10% on the portion of a property between £750,001 and £1,500,000.
  • 12% on the portion of a property costing more than £1,500,000.

For more information, including rates in England and Northern Ireland, and a calculator to work out your stamp duty/transaction tax bill, see our main Stamp Duty guide.

Tip Email

FREE Weekly MoneySaving email

For all the latest deals, guides and loopholes simply sign up today - it’s spam free!