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