Changes to Land and Building Transaction Tax Come Into Effect

first time buyer tax relief

  1. The Land and Buildings Transaction Tax (First-Time Buyer Relief) (Scotland) Order 2018

The above Order came into effect from Saturday 30 June 2018. Subject to certain conditions, First-Time Buyer Relief is now available to first-time buyers in Scotland. The relief applies to qualifying transactions where the contract is entered into on or after 9 February 2018 and the date of entry is on or after 30 June 2018. It is therefore not available for any transactions with an effective date prior to 30 June 2018. The subsidy effectively raises the zero tax threshold for first-time buyers from £145,000 to £175,000. First-time buyers purchasing a property above £175,000 will also benefit from the relief on the portion of the price below the threshold. This means all first-time buyers who meet the criteria will benefit from the relief by up to £600.

Each of the following qualifying conditions must be met for First-Time Buyer Relief to be available:

  • the transaction is an acquisition of a major interest in land;
  • the land consists entirely of residential property and includes a dwelling;
  • the buyer is a first-time buyer who intends to occupy the dwelling as the buyer’s only or main residence;
  • the transaction is not a linked transaction; and
  • the transaction is not one to which Additional Dwelling Supplement applies.

Where there is more than one buyer the subsidy will be available only if each buyer meets all the relevant criteria. If any of the buyers do not meet all the conditions then the relief will not be available.

  1. The Land and Buildings Transaction Tax (Additional Amount – Second Homes Main Residence Relief) (Scotland) Order 2017 and The Land and Buildings Transaction Tax (Relief from Additional Amount) (Scotland) Act 2018

This Order amended the Additional Dwelling Supplement rules around family units and replacing main residences with effect from 30 June 2017. The Land and Buildings Transaction Tax (Relief from Additional Amount) (Scotland) Act 2018 came into force on ​23 June 2018 giving retrospective effect to the 2017 Order. This means that eligible transactions where the contract was entered into on or after 28 January 2016 and where the effective date of the transaction is on or after 1 April 2016 will now be able to claim a relief/repayment.

If you would like further information please contact a member of our team.


first time buyer tax relief


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