Changes to Land and Buildings Transaction Tax (LBTT) come into force in Scotland on Friday, 25th January. The upper rate for commercial property has increased from 4.5% to 5%.
Rhu Wishart, Surveyor at Knight Frank in Edinburgh, commented:
“As of Friday 25th January, Land and Buildings Transaction Tax – or LBTT – will incur changes to the amounts payable on non-residential property transactions.
“The rates and bands are to be amended but the incremental banding system will remain. The new higher LBTT rate of 5% payable on any transaction over £250,000 is accompanied by a reduction in the lower rate from 3% to 1%. While we don’t expect the change to impact on confidence or investment in the Scottish market, investors will need to factor it into cash-flow and valuations considerations.
“The changes to the tax rate aside, Scotland, and Edinburgh in particular remains an extremely popular location as a place to live, study and visit. While the occupational markets remain buoyant, we expect Edinburgh to remain high on investors wish lists.