While up to this point we’ve been explicitly talking about stamp duty tax in England and Northern Ireland, there is also Scotland and Wales to consider.
These home nations have different forms of stamp duty with different rates and names. However, it works almost identically to the stamp duty seen in England.
Land and Buildings Transaction Tax in Scotland
As of 2015, reforms in Scotland changed Stamp Duty to its current form as Land and Buildings Transaction Tax or LBTT for short.
Despite the name change, though, the system works exactly the same as in England and Northern Ireland, except the thresholds applicable are different.
If you’re buying a home in Scotland, you’ll pay Land and Buildings Transaction Tax (LBTT) on properties costing more than £145,000.
Another difference is how buy-to-let investors will pay for the tax.
If you’re buying an additional property, you might need to pay an extra 4% on the total purchase price of the property, as well as the standard rates of LBTT that may apply.
You can also receive first-time buyer relief if you buy a property which you intend to live in as your only or main residence.
A first-time buyer will need to meet certain criteria to qualify for the tax relief. You can find the full criteria on the Revenue Scotland website.
If you qualify, you will not pay LBTT for properties up to £175,000.
If your first-time purchase is for a property that costs more than £175,000, like Stamp Duty, you’ll only pay tax on the portion of the price above £175,000.
There’s no upper limit, so whatever the price of your property, you’ll still be eligible for the first £175,000 of the price.
First Time Buyer Stamp Duty Scotland
Looking at the data, let’s use an example to see exactly how much you would expect to pay as a first-time buyer in Scotland.
So, let’s say a first-time buyer was set to buy a property worth £200,000 in Glasgow in 2024.
They would pay zero tax on the first £175,000, but would 2% on the remaining £25,000.
This means their Land and Buildings Transaction Tax would be £500.
Land Transaction Tax in Wales
Changed in 2018 to Land Transaction Tax or LTT, Wales has a similar system to the rest of the UK nations.
However, perhaps the most notable difference is that there is no stamp duty relief for first-time buyers in Wales.
There is also a 4% additional charge for buy to let investors and additional property buyers.
If you’re buying a home in Wales, you will pay Land Transaction Tax (LTT) if the property costs more than £225,000, up from the previous threshold of £180,000.
If you’re buying an additional property, you will need to pay the higher residential rates for each band.
First Time Buyer Stamp Duty Wales
So, what if you’re a first-time buyer looking at Stamp Duty in Wales?
Using a practical example, a first-time buyer purchasing a £350,000 property in Wales will not pay any LTT up until £225,000.
The remaining £125,000 is subject to a 6% tax rate, meaning a first-time buyer in Wales will pay £7,500 on a property worth £350,000.