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Changes to Scottish stamp duty plans

Finance Secretary John Swinney will announce changes to the proposed new tax rates that will replace Scottish stamp duty in April.

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What you need to know

The Land and Building Transaction Tax will replace UK Stamp Duty in Scotland Credit: PA

The basics: Today, John Swinney announced changes to the rates in his proposed Land and Building Transaction tax .

This tax will replace Stamp Duty in Scotland from April 1 and the plans were first announced in October.

Why the changes? John Swinney changed the details outlined for the tax after George Osborne's autumn statement.

The Chancellor's plans left people buying property at the higher end of the market in Scotland paying much more than their counterparts in England.

So what do the changes mean?

The new tax will be different from stamp duty in that:

  • Scotland will have a higher threshold before tax is paid. Under UK Stamp Duty, the threshold is £125,000. However, under Mr Swinney's new proposals, the threshold in Scotland will be £145,000
  • Buyers at the top end of the market will still pay more than those in England. Properties in Scotland over £750,000 will face the the top rate of tax - 12%. In England, this rate only applies to properties over £1.5 million.

It will be different than the plans proposed in October:

  • The rate of tax proposed for properties worth between £250,000 and £350,000 has reduced. Under October proposals, the rate was 10%. Under the rates announced today, this has halved to 5%.

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