What are the Land and Buildings Transaction Tax (LBTT) rates?

This is a freeview 'At a glance' guide to Land and Buildings Transaction Tax rates.

Land and Buildings Transaction Tax (LBTT) is a tax on land transactions in Scotland.

The English version is called Stamp Duty Land Tax (SDLT).

The Welsh version is called Welsh Land Transaction Tax (LTT).

At a glance

Land and Buildings Transaction Tax (LBTT) is a tax on land transactions in Scotland. It replaced Stamp Duty Land Tax (SDLT) on 1 April 2015.

  • A land transaction requires the acquisition of a chargeable interest in land and/or in buildings situated on the land, including leases, options and interests in property-holding partnerships.
  • Chargeable consideration is anything given in money or money's worth, including VAT, non-monetary consideration such as debt, a consideration which is postponed or payable by instalments and a reasonable estimate of contingent consideration.
  • LBTT is payable by the buyer.
  • Joint buyers have joint and several liability.
  • The effective date of a transaction is usually the date that the land transaction is completed. For a standard house purchase, this is the date that the purchase price is paid.
  • Since 1 April 2016, an Additional Dwelling Supplement (ADS) has been applied to purchases of additional dwellings and buy-to-let properties.
  • The first purchase of any residential property by a company will be subject to the ADS.

Since 1 April 2018, SDLT has only applied to properties in England and Northern Ireland.

Coronavirus: temporary increased nil rate band

  • Between 15 July 2020 to 31 March 2021, the basic LBTT nil rate band was extended due to the Coronavirus pandemic.
  • Rates for the ADS and non-residential LBTT remained unchanged.
  • The Scottish Parliament temporarily extended its ADS refund period for LBTT from 18 months to three years where the 'effective date' of the purchase of the new house was between 24 September 2018 and 24 March 2020.

Time limits and penalties

  • A return is required within 30 days of the effective date of the transaction unless the transaction is one that is specifically defined as exempt or the consideration is below the applicable nil-rate band.
  • The tax is payable on the same date that the return is made, no more than 30 days after the effective date.
  • If the return is filed ahead of the 30-day deadline the tax must be paid on the same date.
  • Any applicable reliefs or exemptions must be claimed on the return.
  • A £100 penalty is issued for a late return and if it is more than three months late daily penalties of £10 per day may be charged for up to 90 days.

Squirrel ad

Are you enjoying our content? 

Thousands of accountants and advisers and their clients use rossmartin.co.uk as their primary TAX resource.

Register now to receive our FREE weekly SME Tax News update