Land And Buildings Transactions Tax
The legislation will introduce a new LBTT additional dwelling supplement on purchases of additional residential properties in Scotland (such as buy-to-let properties and second homes) of £40,000 or more. The additional dwelling supplement is 3% of the total purchase price of an additional residential property purchase of £40,000 or more. Subject to Royal Assent being granted, the supplement will be payable from 1 April 2016.
In the scenario where a person already owns property (perhaps having inherited it) and intends to buy a first main residence, the additional dwelling supplement of 3% will be payable.
For purchases by ‘non-natural persons’ such as partnerships or companies, the “one dwelling rule” does not apply. The additional dwelling supplement applies to each and every purchase of a dwelling by a non-natural person.
The additional dwelling supplement might apply in purchases of dwellings by individuals if the spouse, civil partner, co-habitant or dependent child owns property because any dwelling which is owned by a buyer’s spouse, civil partner, cohabitant or dependent child will be treated as being owned by the buyer him/herself.