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For The First Time In Over 300 Years The Scottish Parliament Levies Its Own Taxes

Iqbal_MIqbal_M Posts: 4,092
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in Politics #1
Under the Scotland Act 2012 stamp duties and landfill taxes were devolved. The SNP administration has renamed stamp duty to the Scottish Property Transaction Tax (SPTT) and changed the rates from:

£0-£125,000 - 0%
£125,001 - £250,000 - 1%
£250,001 - £500,000 - 3%
£500,001 - £1 million - 4%
Over £1 million - £2 million - 5%
Over £2 million - 7%

To new rates of:

£0-£135,000 - 0%
$135,001-£250,000 - 2%
£250,001-£1 million - 10%
Over £1 million - 12%


Further, the Landfill Tax has also been renamed to the Scottish Landfill Tax (SLT) with a standard rate of £82.60/tonne compared with £80/tonne in the rest of the UK.

Sources:

http://www.bbc.co.uk/news/uk-scotland-scotland-politics-29536022
http://www.scotland.gov.uk/Resource/0046/00460440.pdf
https://www.gov.uk/stamp-duty-land-tax-rates
http://resource.co/article/scottish-landfill-tax-confirmed-%C2%A38260-tonne-6663
https://www.gov.uk/government/publications/rates-and-allowances-landfill-tax/rates-and-allowances-landfill-tax

Comments

  • [Deleted User][Deleted User] Posts: 2,115
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    #2
    Land and Buildings Transaction Tax will have a progressive structure to bands and rates which is designed to remove the distortions in house prices associated with bunching of sales around the current thresholds SDLT.

    Now this bit I definitely agree with: only levying the tax on the portion above each band threshold (as with income tax). I wish they'd do the same for stamp duty in the rest of the UK.
  • Ethel_FredEthel_Fred Posts: 34,127
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    #3
    Ultima Thule wrote: »
    Now this bit I definitely agree with: only levying the tax on the portion above each band threshold (as with income tax). I wish they'd do the same for stamp duty in the rest of the UK.
    I agree.
  • Phil 2804Phil 2804 Posts: 21,846
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    #4
    Yet again the tax basically amounts to Edinburgh and the North East subsidising the central belt, most family 3 and 4 bedroom homes in these areas will fall into the 10% band.
  • BrawladBrawlad Posts: 5,711
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    #5
    Phil 2804 wrote: »
    Yet again the tax basically amounts to Edinburgh and the North East subsidising the central belt, most family 3 and 4 bedroom homes in these areas will fall into the 10% band.

    Edinburgh is in the central belt
  • MagnamundianMagnamundian Posts: 2,359
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    #6
    Ultima Thule wrote: »
    Now this bit I definitely agree with: only levying the tax on the portion above each band threshold (as with income tax). I wish they'd do the same for stamp duty in the rest of the UK.

    That makes more sense and explains why the SPTT rates seem a lot higher.

    Looks like in Scotland you'll be better off if your home is worth less than 325,000, but worse off if it's worth more.
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