Land tax holidays
When you buy a home, you normally have to pay a land tax on the purchase price. There are three different forms of land tax that apply in the UK and each has their own starting thresholds, rates and bands.
One common element of all the UK land taxes is the lowest threshold has been temporarily increased for residential property deals completed up until midnight on 31 March 2021.
In England and Northern Ireland, there is zero land tax where the price paid for the property doesn’t exceed £500,000. However, when buying a second home, or acquiring through a company, an additional 3% land tax is payable on the entire purchase consideration.
In Scotland, no land tax is due on residential properties costing up to £250,000, but a 4% supplement applies to the entire purchase price where the property is acquired as a second home or by a company.
In Wales, the land tax for residential properties starts at £250,001. However, a lower starting threshold of £180,000 applies when buying a second home, and a 3% supplement applies on the entire purchase price.
For more news regarding other financial savings, see here.
