New tax if selling house in Scotland

[EddieReadersglasses]

Just wondering if anyone knows the ins and outs of this new tax.
We agreed to buy a house in January this year but it won't be built till July 2015. Tax changes mean it could cost us tens of thousands of £s more which makes it completely unaffordable. However we will conclude missives prior to the change in system. Does anyone know whether this means we will pay current stamp duty rates or still be stung with new higher tax rate (10% of sale price!)
Causing a huge amount of worry for us as currently looking like our dream house will just not happen

Trawling the internet for information but not much to be found

It's great that the people of Scotland can elect a government that can modify the taxes that people in Scotland pay.

Eddie if your missives aren't concluded, it might be worth trying to renegotiate your purchase price in light of the SD changes (or at least ask your solicitor what she / he thinks about doing this). Any purchaser is going to be in the same position, and you might find that the developer will be prepared to reduce the price for a guaranteed sale. For what it's worth, I think house prices in this bracket (i.e. "family" homes in expensive areas, which are a long way from being actual mansions) will fall post the SD changes anyway - people won't suddenly have more money, and so as the amount people have to pay in tax increases, the amount which they are prepared to pay for houses has got to decrease (i.e. you want to be sure that you aren't overpaying anyway).

somesunny yes I've been thinking about this and I agree we most likely be paying too much if we go ahead with buying that house at the price we had agreed. This would likely affect our LTV making it even more expensive to live there.
We will have to renegotiate or walk away now. I don't want to pay over the odds no matter how lovely that new house will be

Also in Aberdeen - the property prices are crazy here.

Eddie - when we moved up to Scotland from Essex, we had to rent for six months, because that was the best way to get a house in the area we wanted to live in, without having to be rushed into a decision about buying a house.

It also meant that we were able to take the time to decorate the new house before we moved in, which was much easier than doing it when all the furniture etc was in place - though that will not be relevant to you as you are buying new, and presumably the house will be decorated when you move in.

It was a pretty hellish thing to do - I hate unpacking after a move - I look at all the boxes, and I know that opening them means I will have to find somewhere to put all the things within - whereas if I don't open them, all I have to do is find somewhere to put the box! Mad, I know. Luckily dh is good at opening boxes and emptying them - and then I have to get on with finding homes for all the stuff.

What we found helped was that, although we rented unfurnished, so some of our furniture had to come to the house, we kept to a minimum the possessions we unpacked - the house we rented had a garage, and we stacked boxes and some furniture in there, so there was less to repack when we moved a second time. I would definitely recommend doing this, even though it meant I had to survive 6 months with a small fraction of my books, as most of them were in the garage!

Surely the fact that house prices are so inflated is the reason this is being done - a way of keeping house prices affordable. I live in edinburgh and approve of it generally, though obviously I'd rather not pay it! As a pp said people won't have more money so asking prices should just adjust.

Yes, negotiate. That is what everyone will be doing where there is no binding contract (of whatever it is called in Scotland).

The papers today are saying that it will hit people in middle range prices the most - not the millionaires but professionals in Edinburgh and Aberdeen already hit by things like loss of child benefit. It will mean the difference between having £20k available to spend on a new kitchen or keeping the loan down and handing it over to the high spend state to mis-spend.

This certainly puts me off ever buying in Scotland. (Mind you in the UK as a whole we do currently have 15% stamp duty on enveloped properties - those bought by a company or trust even if it's in a trust to stop a rich young heiress wasting money or for other similar reasons and 7% stamp duty on properties over £2m).

Anyone paying up to about £330k or it might be roughly that will pay less stamp duty in Scotland and those above more.

I am not in favour of different tax rates or prescription charges in a united kingdom.

I am not in favour of different tax rates or prescription charges in a united kingdom this is, quite rightly, the effect of devolved government. If you don't like it, then vote for someone different to lead Scotland

Greengrow - you can get 3 bedroom semis in both Edinburgh and Aberdeen for (sometimes very much) under £325 000, which is the point at which it will cost more in tax.

You can get a choice of 5 bedroomed houses within a 20 minute commute to Edinburgh city centre for under that as well.

It really isn't middle ranged prices.

Interesting Carol. Which parties do you think would reverse devolution?

Agree we are not talking about the squeezed middle or middle range prices here. The problem is that people living in wealthy areas, working I well paid jobs, with well paid friends and neighbours get a distorted sense of reality.

There are a lot of expensive houses to be had by people who are willing and able to pay. Especially around oil and financial centres.

I'm not sure there is ever much sympathy for people who desire expensive homes and can afford them. Houses are worth what someone will pay. That's what pushes prices up (and down).

If you were a Londoner, you would need to travel two hours each way to work, in great discomfort, to find a more affordable home.

I wouldn't mind paying a bit more- but 10% tax for anything above 250k is extortionate. 4 or 6% above 250k and 10% above say 600k would be a lot more proportionate.

As things stand we won't be moving.

And piglet if I worked in London I'd be paid a lot more (London weighting for my profession) so might have a chance of being able to afford these changes.
Incidentally I already face an hours commute into Aberdeen where I am. Mainly due to chronic underinvestment into the roads/ transport links into the city. Not the case in Edinburgh who have new tram system and shortly will have new bridge crossing at the forth

Piglet Aberdeen is absurdly expensive and we don't all work in the oil industry. It is also relatively small as a city so for a couple trying to continue two careers in their area of expertise it means that only one partner is likely to get a job. At least in London I would have more opportunities. The quality of life in terms of air quality and space is good. However for those on average incomes without any 'weighting' to make up for oil industry wages it is really hard.

This is a really spiteful tax aimed at the professional classes. It's so depressing and shortsighted.

Professional classes? WTF is that?

If house prices are too expensive in Aberdeen surely the solution is to build more houses.

There is no party I can choose to remove the devolved power unfortunately. They have also all recently promised a lot more. It divides us as a nation to have these regional differences.

May we should lobby for 10% income tax and no stamp duty within the M25. I would support that one if Scotland keeps its powers.

but presumably Aberdeen's professional classes high-paid people will dwindle as and when the oil industry does.

It's great news for us !

First bit of good news since referendum

not much consolation if you are trying to buy a house now in Aberdeen...

If you choose to live in an expensive house then you will pay more tax.

Hard luck.

Or you don't move. Stamp duty is a tax on job mobility. If people don't move for work then employers make less profit and the poor suffer. Stamp duty is a major deterrent on my ever moving again.

you don't have much choice in Aberdeen...

in terms of expensive housing..

but I agree that mobility will be affected.

Average house price in Aberdeen is £220,000.

If you are paying less than £325,000 you are saving money.

So most people in Aberdeen will be better off.