What are the implications of selling my Scottish home?

What are the implications of selling my Scottish home? I own and live in a property in Scotland. What are the implications of me selling the house to a relative, who will buy it using a buy-to-let mortgage, and allow me to stay in it and pay rent to her as a tenant?

If the house has always been your main residence, there should be no capital gains tax implications for you. Depending on the purchase price, your relative may have to pay the Scottish land and buildings transaction tax (LBTT), which replaced the previous stamp duty land tax (SDLT) in Scotland from April 2015. With regards to the new lease allowing you to remain in the property as a tenant, there may be relief from LBTT under the sale and leaseback provisions. For further information on LBTT, see the Revenue Scotland website at here. And of course, your relative will have to declare and pay tax if applicable, on any rental income she receives from you.

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