What are the Land and Buildings Transaction Tax (LBTT) 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).

LBTT rates

Residential property rates

From 15 July 2020 – 31 March 2021

Band: market price £

Tax rate

Up to 250,000

0%

250,000 – 325,000

5%

325,000 – 750,000

10%

750,000 and over

12%

From 1 April 2016 – 14 July 2020

Band: market price £

Tax rate

Up to 145,000

0%

145,000 – 250,000

2%

250,000 - 325,000

5%

325,000 - 750,000

10%

750,000 and over

12%

Rates for the Additional Dwelling Supplement (ADS) and non-residential LBTT remain unchanged.

From 1 April 2016 onwards

Band: market price £

Tax rate

Up to 145,000

0%

145,000 – 250,000

2%

250,000 - 325,000

5%

325,000 - 750,000

10%

750,000 and over

12%

First-time buyers

From 30 June 2018 – 14 July 2020

Band: market price £

Tax rate

Up to 175,000

0%

175,000 – 250,000

2%

250,000 - 325,000

5%

325,000 - 750,000

10%

750,000 and over

12%

Non-residential property transactions on or after 25 January 2019

Band: market price £

Tax rate

Up to £150,000     

0%

£150,000 - £250,000                

1%       

Above £250,000

5%

Non-residential property transactions before 25 January 2019

Band: market price £

Tax rate

Up to £150,000

0%

£150,000 - £350,000

3%

Above £350,000

4.5%

 

LBTT At a glance

The 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.

  • LBTT is payable in respect of land transactions.
  • 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, 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) of 3% will be applied to purchases of additional dwellings and buy-to-let properties. This increases to 4% from 25 January 2019, see LBTT: Additional Dwelling Supplement.
  • The first purchase of any residential property by a company will be subject to the ADS.

Since 1 April 2018 SDLT only applies 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 has been extended due to the coronavirus.
  • Rates for the ADS and non-residential LBTT remain unchanged.
  • The Scottish Parliament temporarily extended its ADS refund period for land and buildings transaction tax from 18 months to three years.

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.

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