Buyers of expensive Scottish homes face big tax rise, as Scotland’s finance minister John Swinney announced plans to change taxes on house sales.
Britain has currently two main residential property taxes - a stamp duty, which is a tax on transactions and a council tax, an annual levy on property which varies with its value. While stamp duty is progressive—more expensive houses attract a higher rate, council tax is more efficient, but is regressive.
Announcing the new rates – for the first national tax to be set in Scotland for more than three centuries – Scotland started utilizing new powers promised ahead of last month's independence referendum.
According to the Scottish government, 90% of homebuyers would be better or at least no worse off under the new tax, while only owners of property costing more than £325,000 would pay more.