Fraser Brooks & Co. WS

12/11/2023

If you cannot reach us by email on our usual email addresses try please
[email protected]

Or call us on
01312256226
Update
I’m informed that the problem is solved

26/05/2023

To access properties we are selling visit

fraserbrooks.com
And

espc.com

Fraser & Brooks is a highly experienced law firm specializing in property law in Edinburgh. Offering cost-effective law services in and around Edinburgh. Call us now for more information.

17/12/2022

The level at which people will now pay the higher rate of 42p in the pound is about £43,000 – a good wage but, with rising fuel and food costs, nowhere near a fortune.

16/12/2022

LBTT increased from 4% to 6% at alarmingly short notice
This latest grab has gone largely unnoticed as many were focusing on increased income tax, you will now face an additional stamp duty type tax when buying a second or subsequent home
6% of the price -not a small amount in a typical edinburgh purchase
Interesting that the rate went from 4% to 6%
What happened to 5%

Anyone earning more than £43,662 will face a higher tax bill due to changes to the higher and top rates of tax

08/09/2022

As a mark of the great respect that we feel for her late Majesty, in her long reign, we will be closed on Monday 19th September 2022

28/05/2022

See our properties on espc.com

27/03/2021

Legal Rights in an Estate

Legal Rights are a distinctive feature of Scots Law, protecting certain family members from disinheritance. They entitle a spouse or civil partner and any children (or the descendants of a predeceasing child) to claim a portion of a deceased person’s estate, even if the deceased left a will leaving nothing to them. Legal Rights apply automatically, without a claim to the court having to be made.
They cannot be defeated by a Will.

Cohabitees do not have an entitlement to Legal Rights. Under certain circumstances, a surviving cohabitee can raise an action through the courts, but this is not an automatic right.

What can be claimed?

The value of a Legal Rights claim is calculated by reference to the value of the net ‘moveable property’ in the deceased’s estate. Generally Moveable property comprises any assets that are not land or buildings. Any debts and certain expenses (such as inheritance tax and funeral costs) are deducted to leave the net value.

The value of the Legal Rights claim depends on whether the deceased left:

a surviving spouse or civil partner and children;
a surviving spouse or civil partner alone; or
children alone.
A widow, widower or surviving civil partner can claim one-third of the deceased’s moveable estate if there are also surviving children, or one-half if there are not. Surviving children are entitled to one-third of the moveable estate, equally between them, if there is a surviving spouse or civil partner. This increases to one-half if there is no surviving spouse or civil partner.

A child’s entitlement is not increased by his or her siblings choosing not to claim their respective shares. For example, if two surviving children are collectively entitled to a third of the net moveable estate, each child would be entitled to one-sixth. If only one child wishes to claim Legal Rights, the claim remains one sixth – it is not increased to a third as a result of the other child deciding not to make a claim.

If a family member is also a beneficiary under the will, usually he or she must choose to claim either his or her entitlement under the will, or Legal Rights. It is not possible to claim both Legal Rights and an entitlement under the will.

What happens if someone does not wish to claim their Legal Rights?

There is no obligation to claim Legal Rights. Anyone who is entitled to Legal Rights may renounce them at any time – either before or after the death of the person in whose estate they have the entitlement.

Asking relatives to renounce their Legal Rights during your lifetime can be a useful estate planning tool. However, a person can never be forced to give up their entitlement, nor can they be paid to do so.

If you are concerned about Legal Rights being claimed on your estate, or if you would like more information on making a claim, it is important that you seek the advice of a qualified advisor .

Note also that there is legislation, as yet not fully in force that may increase legal rights or other rights in an Estate.
The Succession (Scotland) Act 2016

25/03/2021

good article from the ESPC (Fraser Brooks a founding member firm) on LBTT the” Scottish Stamp duty”
Watch out also for the ADS charge of 4% for a second and subsequent home

Following the announcement of a “Stamp Duty holiday” in England and Northern Ireland, the Scottish Government confirmed that they would be raising the nil LBTT threshold from £145,000 to £250,000 on 15th July 2020.

In her budget announcement on 28th January, Kate Forbes MSP confirmed that the LBTT reduction would end as planned on 31st March 2021, meaning the zero tax threshold will drop from £250,000 back to £145,000. First time buyers will benefit from a nil tax threshold of £175,000, as they did prior to the 15th July 2020.

Rishi Sunak, UK Chancellor of the Exchequer, has announced an extension of the “Stamp Duty holiday" in England and Northern Ireland from the end of March until the end of June in his Budget announcement on 3rd March. However, this would not apply to Scotland - the Scottish Government has currently confirmed that the current LBTT reduction will end on 31st March

What is LBTT?
Land and Building Transaction Tax (LBTT) is Scotland’s version of stamp duty. This property tax is applied to residential and commercial property purchases in Scotland.

How much is LBTT in Scotland?
The amount of LBTT paid on a residential property transaction depends on the property selling price. There are various LBTT bands, with a different percentage of tax applied to each band.

In July 2020, the Scottish Government raised the nil tax threshold from £145,000 to £250,000 for residential property transactions but all the percentages for the other bands remain the same. The table below shows how much LBTT is payable on residential property transactions for the different bands, both before and after 15th July 2020. LBTT bands will revert to what they were prior to 15th July 2020 after 31st March 2021 (with first time buyer relief up to £175,000). You can also use our LBTT calculator to find out how much you'll need to pay based on the property price.

LBTT band Transactions before 15th July 2020 Transactions between 15th July 2020 and 31st March 2021
Up to £145,000 0% 0%
£145,000 - £250,000 2% 0%
£250,001 - £325,000 5% 5%
£325,001 - £750,000 10% 10%
Over £750,000 12% 12%
How much more LBTT will one have to pay if I purchase a home after 31st March?
The change to LBTT on 15th July 2020 meant anyone purchasing a property under £250,000 didn't have to pay LBTT, unless it was a second home in which case the 4% Additional Dwelling Supplement applies.

Those who purchased a property over £250,000 after 15th July 2020, only paid LBTT on the amount over £250,000. Raising the 0% threshold from £145,000 to £250,000 meant people purchasing a property over £250,000 saved up to £2,100 on LBTT.

As the LBTT reduction is coming to an end on 31st March 2021, from 1st April the zero tax threshold will drop back to £145,000 meaning buyers will have to pay up to £2,100 more for a property purchase, in comparison to those who bought during the LBTT holiday. However, first time buyers will benefit from tax relief up to £175,000, saving them up to £600 compared to other buyers. This means they will only have to pay up to an extra £1,500.

I’m in the process of purchasing a new property – will I benefit from the higher nil tax LBTT threshold?
The Scottish Government has confirmed that any transaction with an “effective date” between the 15th July 2020 and 31st March 2021 (inclusive) will be eligible for the new LBTT rates. For most residential property transactions, the “effective date” is the date of settlement or entry (when the buyer pays the purchase price to the seller and the seller give the keys and legal ownership

a first time buyers – how does the change in LBTT affect them ?
Prior to the 15th July 2020, first time buyers benefited from 0% LBTT up to £175,000 as opposed to £145,000. This meant they could save an additional £600 compared to other buyers

With the LBTT holiday currently in place, first time buyers (along with all other buyers) benefit from a higher nil tax threshold than £250,000. This meant first time buyers can still save up to an extra £1,500 on LBTT on property purchases.

Kate Forbes MSP has confirmed that the LBTT reduction will come to an end on 31st March 2021 as planned. After this date, first time buyers will still benefit from a zero tax threshold of £175,000 instead of £145,000, saving them up to £600 on property purchases compared to other buyers.

What about the Additional Dwelling Supplement?
The Additional Dwelling Supplement (ADS) is a 4% surcharge which applies to second home purchases. This charge still applied on transactions between 15th July 2020 and 31st March 2021, and will continue to apply after the LBTT holiday comes to an end.

This means if you are purchasing a residential property and already own a home, you will be required to pay the 4% ADS charge.

If you are planning to sell your original property, you can claim the ADS amount back provided you sell within 18 months.