The Holyrood Elections – And the Implications for Home-Buyers

For the first time, Scottish voters are faced with a tough decision regarding taxation in the forthcoming elections. If you’re not sure what the party policies are, here’s a quick guide to help.

Holyrood Elections – Taxation Matters

• SNP. Despite originally stating that they would be introducing a 50p rate for those earning £150,000 per annum, The SNP have now said that income tax will remain the same as it is now. This is a significant move, which sees the party move more towards the centre, and further away from left-wing policies.

• Conservatives. As challengers to SNP in Scotland, the Tories have declared that the people of Scotland should pay no more in income and property taxes than the rest of the UK. However, stamp duty prices have recently risen south of the border – which has implications for those seeking to invest in property.

• Labour. Labour are sticking to their policy of introducing a 50p tax rate, and also want to bring in a 1p tax increase. This is good news for less affluent people in the country – bad news for higher earners and those with property portfolios.

• Liberal Democrats. The Lib Dems are also intent on introducing a 1p rise, but want to make the 0% band larger, to support people on lower pay.

What Does the Future Hold for Home-Buyers?

For home-buyers, keeping John Swinney’s Land and Buildings Transaction Tax is undoubtedly a top priority – as those buying an averagely priced Scottish home (£139,000) pay no stamp duty. Under recent Tory changes, stamp duty in the UK has now risen sharply – by 3% across all tax brackets for people buying second homes or buy-to-let properties.