A law firm for life

It has been announced that the Scottish Government are going to increase the starting threshold for paying Land and Buildings Transaction Tax (LBTT) for all residential properties from £145,000 to £250,000.

This move follows the footsteps of England and Northern Ireland when the Stamp Duty Land Tax (SDLT) ‘holiday’ was imposed whereby all property purchases in England and Northern Ireland are exempt from SDLT payments on purchase prices up to £500,000.

The change will have a significant impact on many purchasers across Scotland (particularly first- time buyers who will now be able to add more funds towards their deposit). Generally, the changes will mean that eight out of ten purchasers across Scotland will have no tax to pay at all.

However, it is not clear when this change will take effect as a start date has not been announced. Finance Secretary, Kate Forbes, said that the change would be introduced “as soon as possible”. This contrasts with the announcement made by the chancellor who said the changes would come into force with immediate effect for property transactions across the border.

Further, it is not clear whether Additional Dwelling Supplement Tax will also form part of the ‘tax holiday’ or how the tax exemption will affect ongoing transactions. It is unclear whether the LBTT exemption only applies to new purchases going forward that do not yet have a concluded contract or whether it could apply retrospectively to transactions that although concluded have not yet settled due to Covid-19.

The cut in LBTT should definitely be considered a positive change however the uncertainty about when the LBTT holiday begins may cause purchasers to delay submitting offers until the rules surrounding the tax cut have been clarified and this could stall the market.

Further, the Government has announced measures to boost the property market by pouring an extra £50 million into the First Home Fund which should equate to helping another 2000 first time buyers start their climb up the property ladder.

The First Home Fund scheme was introduced to assist first time buyers in affording their first property and works by offering purchasers up to £25,000 towards the cost of buying a home. The Government then takes an equity share in the property in exchange for the loan and the homeowner will repay the Scottish Government when they sell. However, they can pay it off earlier and there are no monthly payments charged nor any interest on the loan during ownership.

These changes are productive and hopefully will help the economy to grow as the property market across the UK picks up.

Contact The McKinstry Company

If you have any queries regarding the Government’s announcement or if you are thinking of moving house then please do not hesitate to get in touch with us at The Mckinstry Company.

Join the McKinstry family
Some of our happy clients
  • All very prompt, efficient, clear, friendly and personable. Not overwhelming with legal jargon. Many thanks for making the process of setting up a will so straightforward.

    Mrs D, Troon
  • We required our Wills to be amended and that was done without any problems whatsoever.

    Mrs F, Ayr
  • Very business-like and helpful

    Mr M, Ayr
  • I was very impressed with the professionalism shown by all members of staff I had any dealing with. All calls and emails were relevant to the sale of my flat. All questions I had were dealt with at the time. For any further legal matters I will certainly be using The McKinstry Company

    Mr H, Ayr
  • Excellent service most happy with attentiveness and customer service.

    Mr F, Condorrat
  • Nat & Libby efficiently dealt with every question I had.

    Mrs K, Ayr
  • Kirsty understood our weird schedule when we were often 8 hours behind UK time, and simplified things for us by liaising via email. She was extremely approachable and dependable. In Kirsty’s absence, Jodie and Nathaniel would step in and communicate with us, and were very helpful too.

    Mrs N, Ayr
  • Great service and always on hand to answer our questions. Prompt and efficient response.

    Mr H, Ferniegair
  • Questions and communication were answered promptly

    Mr W, Sinclairston
  • Speaking from my own personal experience I was perfectly happy with the service I received. Everything was done to my satisfaction.

    Mrs I, Largs
  • Very efficient, timely and very mannerly on the phone

    Mr McN, Mauchline
  • The service was superb.  Kirsty and team were extremely helpful.

    Mr and Mrs R, Ayr
  • First class service from start till finish. Always there to give help and advice.

    Mr R, Ayr
  • Great service and advice from a good professional company.

    Mr R, Kilmarnock
  • Excellent, very friendly and professional. I will be using you for all my property transactions in the future!

    Mrs S, Godstone
  • My case was handled sensitively and smoothly.

    Mr N, Ayr
  • Everyone concerned in the sale of our property was very efficient and kept us up to date with all happenings.

    D Ferguy, Cookstown
  • Great service.  Would recommend you to others.

    Mr S, Kirkmichael
  • Communication was always available when required. Made me feel confident throughout the process.

    Mr L, Ayr
  • Always replied or phoned back when I needed my questions answered.

    Miss McF, Patna
  • A very prompt and friendly service, a pleasure to deal with.

    Mr R, Aberdeen
  • Robert was very supportive.

    M Carruthers, Kilmarnock.
  • Great, Rebecca was very pleasant to deal with and went out of her way to help with our case

    S Everett, Kilbarchan
  • The solicitor / paralegal I was dealing with was very professional and performed to a high standard. I was very impressed.

    B Ferguson, Methil
  • Local firm, word of mouth good reports.

    K Rooney, Glasgow
  • All queries were dealt with in a prompt and professional manner and I was kept informed of progress as events developed. Thank you very much for making a difficult situation much easier to deal with.

    Mrs McG, Ayr
  • Communication via telephone and email was regular, prompt and comprehensive. All queries and questions were answered with no delays or problems. My experience with the McKinstry Company was pleasant and smooth.

    Mr McK, Ayr
  • My family and I received excellent service from everyone with whom we had contact. The service was of the highest standard and, as I have in the past, I will continue to recommend the company to anyone seeking legal assistance.

    Mrs S, Ayr
  • All emails and calls were dealt with promptly. Very impressed. Very very pleased with service.

    Mr and Mrs H, Hull
  • I enjoy the friendly atmosphere. Very professional.

    Mrs A, Ayr
  • Mr Honeyman was very professional and knowledgeable which made us feel reassured. Very happy with the service and if I needed a solicitor again I would get in touch.

    Mr B, Ardrossan
  • Prompt quick efficient communication.

    Mrs K, Cumnock
  • Ease of making appointments and timescale for completion of business all good.

    Mr & Mrs T, Maybole
  • Gave reassurance and comfort at a stressful time. I felt ten times better after our first meeting and support provided ultimately exceeded my desired outcome.

    Mr N, Saltcoats
  • The supportive way that the advice was provided along with the willingness to fit appointments in with our requirements

    Mr R, Ayr
  • The whole process was handled with upmost professionalism throughout.

    Mr McN, Kilwinning

We’re delighted to welcome you back!

We are open from 1st July by appointment. We will be restricted to executry and matrimonial clients. Social distancing measures will be in place.