Both the UK and Scottish Governments have introduced changes to the way tax is levied on house purchase transactions.
Doing away with the tiered system where buyers paid a flat rate of tax depending on which bracket the purchase fell into, there is now a ‘progressive’ scale which applies to all purchases.
All house buyers will pay 0% tax on the first portion of the house price – up to £145k in Scotland and £125k in the rest of the UK.
A levy of 2% is then made on the next portion up to £250,000 and a 5% rate applying to the next portion.
The rates increase up 12% on the most expensive properties as per the following table:-
| rUK Bands |
Tax rate | Scotland Bands |
Tax rate |
| £0 – £125k | 0% | £0 – £145k | 0% |
| £125 – £250k | 2% | £145k – £250k | 2% |
| £250K- £925k | 5% | £250k – £325k | 5% |
| £925 – £1.5m | 10% | £325k – 750k | 10% |
| £1.5m + | 12% | £750 + | 12% |
Calculate your tax
Both HMRC and Revenue Scotland have produced online tax calculators to allow you to see how the changes may affect you. Click the links below.
