Skip to content
Law Society of Scotland
Search
Find a Solicitor
Contact us
About us
Sign in
Search
Find a Solicitor
Contact us
About us
Sign in
  • For members

    • For members

    • CPD & Training

    • Membership and fees

    • Rules and guidance

    • Regulation and compliance

    • Journal

    • Business support

    • Career growth

    • Member benefits

    • Professional support

    • Lawscot Wellbeing

    • Lawscot Sustainability

  • News and events

    • News and events

    • Law Society news

    • Blogs & opinions

    • CPD & Training

    • Events

  • Qualifying and education

    • Qualifying and education

    • Qualifying as a Scottish solicitor

    • Career support and advice

    • Our work with schools

    • Funding your education

    • Social mobility

  • Research and policy

    • Research and policy

    • Research

    • Influencing the law and policy

    • Equality and diversity

    • Our international work

    • Legal Services Review

    • Meet the Policy team

  • For the public

    • For the public

    • What solicitors can do for you

    • Making a complaint

    • Client protection

    • Find a Solicitor

    • Frequently asked questions

    • Your Scottish solicitor

  • About us

    • About us

    • Contact us

    • Who we are

    • Our strategy, reports and plans

    • Help and advice

    • Our standards

    • Work with us

    • Our logo and branding

    • Equality and diversity

  1. Home
  2. News and events
  3. Legal news
  4. Mackay adds to second home LBTT and refuses tax threshold rise

Mackay adds to second home LBTT and refuses tax threshold rise

13th December 2018 | tax

Purchasers of second homes in Scotland will pay an additional 4%, rather than 3%, in land and buildings transaction tax from 25 January 2019, Finance Secretary Derek Mackay announced in his budget yesterday. The move, which also affects those who invest in buy-to-let properties as well as (temporarily at least) those who buy their next house before they sell their present one, counters but with wider effect a 1% stamp duty land tax surcharge south of the border for purchases of residential property by non-residents.

Mr Mackay also declined to raise the higher rate income tax threshold from its present level of £43,430, in response to the increase to £50,000 announced by the Chancellor, meaning that Scottish taxpayers will be charged at 41% on income between those levels compared with 20% in the rest of the UK – plus a further 12% in national insurance contributions. The Cabinet Secretary said it was "not the time to cut tax for the highest earners at the expense of public services". The tax rates applied to the different bands remain unchanged. 

Also on LBTT, the rates for non-residential property become more differentiated, with the lower rate reduced from 3% to 1% while the higher rate – which will apply above £250,000 rather than the present £300,000 – rises from 4.5% to 5%.

Non-domestic rates will rise at less per pound than the rate of inflation, giving a lower poundage than in the rest of the UK.

Add To Favorites
Law Society of Scotland
Atria One, 144 Morrison Street
Edinburgh
EH3 8EX
If you’re looking for a solicitor, visit FindaSolicitor.scot
T: +44(0) 131 226 7411
E: lawscot@lawscot.org.uk
About us
  • Contact us
  • Who we are
  • Strategy reports plans
  • Help and advice
  • Our standards
  • Work with us
Useful links
  • Find a Solicitor
  • Sign in
  • CPD & Training
  • Rules and guidance
  • Website terms and conditions
Law Society of Scotland | © 2025
Made by Gecko Agency Limited