Scottish Government announces 3% tax to be introduced on second properties
Scotland's Finance Secretary John Swinney has announced an extra charge for people buying second homes and buy-to-let landlords.
As set out in the Draft Budget 2016-17, the Scottish Government proposes introducing a LBTT supplement of 3% of the total price of the property for all relevant transactions on or above £40,000 and will be levied in addition to the current LBTT rates.
Band Existing LBTT rates Additional Homes Supplement
Up to £145,000* 0% 3%
£145,001 to £250,000 2% 3%
£250,001 to £325,000 5% 3%
£325,001 to £750,000 10% 3%
£750,001 and over 12% 3%
*Supplement only payable on transactions on or above £40,000.
The 3% supplement would be applied to the whole purchase price, and not just the proportion of the price above £40,000.
References: BBC, East Lothian Council