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Scotland announces no tax on properties below £130,000

Home buyers in Scotland will no longer have to pay tax on properties valued under £130,000, Scottish finance Secretary John Swinney has announced.

This was proposed in the budget proposal for the year ahead. The finance secretary has also promised that tax would be reduced for a further 44,000 house sales up to the value of £325,000, but advised the 12% top rate would still apply to houses costing over £1 million.

Under the governments new Land and Building Transactions Tax, a marginal tax of 2% would apply to transactions between £135,000 and £250,000, while a 10% rate will apply to those between £250,000 and £1m.
The finance secretary has advised that under the new system, 90% of taxpayers and 95% of non-residential taxpayers would be better or no worse off.

Swinney said:
"As a result of the rates I have announced today, nobody will pay tax on the first £135,000 of their house purchase. 5,000 more transactions will be taken out of tax, supporting first-time buyers and those buying properties in the affordable market."
"In exercising its first judgements on national taxes, this government has put fairness, equity and the ability to pay at the heart of what it has done,"
"That is the benefit of putting decisions about Scotland's future in Scotland's hands."
Some opposing politicians are still sceptical, reminding Mr Swinney he had failed to live up to his promise of protecting health spending.

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