John Swinney’s new tax rates on Scottish property purchases will make very little difference to the buying and selling of homes as people need a roof over the head and will move up and down the ladder regardless to achieve this basic necessity.
However, the good news is for the majority of buyers in Scotland, the LBTT changes will save them money come April when buying a property as the average house price in the country is £160,000, and £232,000 in Edinburgh.
In my view, LBTT is a fairer and more modern way to tax compared to the old stamp duty. It is more progressive as opposed to lump sum changes which would have worked many years ago before prices sky rocketed.
Previously, many buyers would hunt for a home less than £250,000 as they would pay £5000 less in tax if they purchased one at £250,001 which is madness.
We have to move with the times and it’s about time there is in place a tax system which is reflective of today’s property market.