As you may be aware, Land and Buildings Transaction Tax (LBTT) replaced UK Stamp Duty Land Tax (SDLT) in Scotland from 1 April 2015.  LBTT is a tax applied to residential and commercial land and buildings transactions (including commercial purchases and commercial leases) where a chargeable interest is acquired.

Revenue Scotland will administer LBTT with support from Registers of Scotland (RoS).

A progressive tax structure

The structure of LBTT is designed so that the charge is more proportionate to the actual price of the property. The percentage rate for each band in LBTT is applied only to the part of the price over the relevant threshold and up to the next threshold. LBTT Rates & Bands detailed below.

Residential property transactions – LBTT rates and bands

For residential property transactions, the rate of tax is primarily determined by reference to percentages of the chargeable consideration for the transaction falling within the bands below.

If the purchase price is above the nil rate tax band of £145,000, LBTT is charged at the appropriate rate on the amount of the chargeable consideration within the relevant bands. For example, a house bought for £280,000 is charged at:

  • 0% for the first £145,000, then
  • 2% for the next £105,000
  • 5% for the next £30,000 and
  • so £3,600 must be paid in LBTT

Consideration genuinely attributable to moveable property is not included within chargeable consideration. Moveable property includes fixtures and fittings eg. curtains and furniture.

*Information provided by www.Revenue.scot and more information can be found by visiting their website. You can also find a Property Transaction Calculator by visiting https://www.revenue.scot/land-buildings-transaction-tax/tax-calculator/lbtt-property-transactions-calculator.

Purchase PriceLBTT Rate
Up to £145,0000%
Above £145,000 to £250,000 2%
Above £250,000 to £325,000 5%
Above £325,000 to £750,000 10%
Over £750,000 12%
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