ARTICLE · 15 MARCH 2016

Weekly Tax Update - 7 March 2016

Smith & Williamson

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Amendments have been proposed to the draft land & buildings transaction tax (LBTT) legislation concerning the extra 3% charge on second homes.

United KingdomTax

Smith & Williamson

1. GENERAL NEWS

1.1 3% charge on additional dwellings in Scotland

Amendments have been proposed to the draft land & buildings transaction tax (LBTT) legislation concerning the extra 3% charge on second homes.

The amendments provide for the following:

The extra charge only applies if the chargeable consideration exceeds £40,000.
In determining whether a buyer owns more than one dwelling, dwellings in Scotland or elsewhere bought for investment or dealing purposes are excluded. This means that a person owning only buy-to-let properties will not face the additional 3% charge on the purchase of their first dwelling which is not bought for investment or dealing purposes.
Subject to a claim, the 3% extra charge will not apply to purchases of six or more dwellings in a single transaction.

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