The Land and Buildings Transaction Tax (Tax rates and Bands etc.) (Scotland) Amendment Order 2018 came into force on 25^th January 2019 and has implemented a number of changes to the current system.

Houses prices in Scotland have risen for the fifth month in succession with June boasting an increase of 0.5%, with annual growth rising from 2.9% to 4.6% compared to May, according to latest index figures.

As announced by Revenue Scotland this week, the Land and Building Transaction Tax (Additional Amount – Second Homes Main Residence Relief) (Scotland) Order 2017 came into effect on 30 June 2017.  The new Order acts as an amendment to the existing Additional Dwelling Supplement (ADS) rules which concerns replacing main residences and the position regarding family units as detailed in Schedule 2A of the Land and Buildings Transaction Tax (Scotland) Act 2013. The amendment incorporates Paragraphs 8A and 9A in to the 2013 Act and will apply to all contracts entered into on or after 20 May 2017 and transactions completed on or after 30 June 2017.

Due to the success of the British Property Federation’s Model Commercial Lease (MCL) introduced in England in 2014, the Scottish Property Standardisation Group (SPSG) have recently produced a similar style lease as a drafting aid for practitioners north of the border. The SPSG’s version forms the basis of a lease for multiple occupancy buildings and includes helpful guidance notes to assist drafting.

Time is quickly running out for buy-to-let landlords currently claiming income tax relief on mortgage interest payments. From the 6^th April 2017, residential landlords will face new restrictions for income tax relief for financing costs for residential properties. Until now, individuals buying property to let are able to claim relief on their mortgage interest payments at their marginal rate of tax. For example, individuals paying the basic rate of tax get 20% tax relief, whereas those within a higher tax bracket can claim up to 45%.