When Scottish Real Estate Taxes Are Cut by 25%, What’s Left?
When Scottish real estate taxes are cut by 25% (and there are many more), the amount of property tax relief available to the wealthy will be very limited.
The Government has just announced that it will cut the maximum relief to the super rich from £10,000 per person to £4,000, and there are only so many people in Scotland who can afford to buy that property.
As a result, it may not be too late for those people to get out of their super rich lifestyles and into the real estate market.
Read more In addition, the Government has announced that in-home care services will be scrapped, and that in order to save money, local authorities will be able to increase the maximum allowable property tax exemptions from £3,500 to £10.1 million.
As well as this, a number of new tax reliefs will be introduced.
The Home Builders’ Benefit will be abolished.
The Home Builder’s Relief, the Local Authority Tax Credit and the Housing Benefit will all be abolished, with the Home Buildering Tax Relief for properties up to three storeys and the Local Authorities Housing Benefit for properties of three storeies and more being abolished.
These tax relief changes are all designed to help the most vulnerable people in the country.
If you want to help a vulnerable person, there are a number things you can do.
Firstly, make sure you can afford the new tax cuts.
A recent study by Shelter found that the median household income in Scotland is £31,000 a year, but there are £1.5 billion of households in Scotland with incomes of £50,000 and over.
For this reason, the Scottish Government has introduced a new £100 per week tax credit to help low-income families with their mortgage repayments.
Second, if you are planning to move, you may want to consider how you can help your local council.
The Scottish Government said it was setting up a new council tax relief fund for the councils in Scotland, with up to £5,000 to be used towards council tax payments for housing and repairs.
Third, if your family or friends are in an estate, you can ask your council to reduce the amount it is able to tax your home, so you can live in a better home and reduce your tax bill.
Lastly, you could try to find a local housing association to help you, or you could use the Home Buyers Benefit.
If you have any other questions about these changes, please feel free to contact us on 07723 757 877 or email us at [email protected]