Chapter 1: Overview Of The Proposed Relief
8. In general terms, the Scottish Government’s intention is that the relief will be available where:
- The buyer is a natural person,
- A single dwelling is purchased for more than £145,000.
- The buyer is a first time buyer, who has never had a ‘major interest’ in a dwelling in Scotland or an equivalent interest in a dwelling situated anywhere else in the world.
- The buyer intends to occupy the dwelling as their main residence.
- The effective date of the transaction is on or after the date that the relevant legislation comes into force, and consistent with any final transitional provisions.
9. In addition, to minimise complexity and address the risk of avoidance, where there is more than one buyer the relief will be available only if each and every buyer meets all the relevant criteria . If any of the buyers does not meet all the conditions then the relief will not be available.
10. In keeping with all other reliefs, the first time buyer relief will need to be claimed in the first tax return or an amendment of that return.
11. Further commentary and questions regarding these criteria is set out in this consultation document.
12. The relief will be available to all eligible first time buyers who purchase a single dwelling for more than £145,000. As such, first-time buyers buying a dwelling above £175,000 would also benefit from the relief on the portion of the price below the threshold.
13. The benefit to first-time buyers in terms of reduced tax will depend on the value of the property purchased, but will be up to a maximum of £600. The table below sets out illustrative examples of the amount of tax which would be due for various transactions, with and without the relief.
|Purchase Price||Tax Due - With Relief||Tax Due - Without Relief|