Although the temporary increase in the Land and Building Transaction Tax (LBTT) threshold to £250,000 was aimed at those buying their main residence, it also benefits those buying a second or subsequent property where there is a 4% supplementary charge. Thus, the rate of LBTT on a second home costing up to £250,000 is now 4%. Previously, the rate was 4% up to £145,000, then 6% up to £250,000 and then 9% up to £325,000. The SDLT on a second home costing £300,000 is now £14,500 compared to £16,300 if the purchase had completed before 8 July 2020.

It is interesting to compare this revised charge with that in England; where the threshold is £500,000 and the additional dwelling supplement is 3%.  The result of the difference in the tax rates is that buying the same home England would suffer Stamp Duty Land Tax payable of £9,000 – £5,500 lower than that payable for the home in Scotland.