Very Important News for Purchasers
Very important news for purchasers of additional / holiday homes, buy to lets and non-residential property!
As part of the recent Budget, the Scottish Government announced proposals to raise the rate of Additional Dwelling Supplement (ADS) from its current rate of 3% to 4%.
ADS is a tax based on the purchase price of residential property in Scotland and is applicable to buyers who already own or have an interest in another property (either in Scotland or worldwide).
Subject to approval by the Scottish Parliament, these new rates are proposed to take effect from 25th January 2019.
Investors in property or those contemplating the purchase of a holiday home are strongly encouraged to get in touch with us immediately, particularly if they are looking to settle a purchase on or around the end of January 2019, to consider the effect this 1% increase will have and whether transactions can be settled before these changes are introduced.
Further proposals were also announced which will change the rates of non-residential Land and Buildings Transaction Tax (LBTT). Under these changes, the lower rate of non-residential LBTT will be reduced from 3% to 1% of the purchase price and the upper rate increased from 4.5% to 5%.
Commercial property investors and purchasers should consider these proposals and review the effect these will have for transactions they are considering and, in particular, for those due to settle at the start of 2019.
If you require advice on the purchase or sale of either residential or non-residential property, especially in light of these proposed changes to ADS and LBTT, please do contact our team in Fort William on 01397 701000 or in Oban on 01631 562308.