LBTT6013 – Tax rates and bands

LBTT guidance on the tax rates and bands which apply to the rent and premium in a land transaction involving a lease.

For chargeable leases, the following tax rates and bands apply to the Net Present Value (NPV) of the rent payable under the lease:

NPV of rent payable LBTT rate
Up to £150,000 0%
Above £150,000 1%

LBTT may also be payable on chargeable consideration other than rent, such as a premium. The standard tax rates and bands for non-residential property transactions apply to any such payments under a lease (except in the case of qualifying leases where there is a premium paid, which will be taxable at the residential rates):

Premium LBTT rate
Up to £150,000 0%
Above £150,000 to £350,000 3%
Above £350,000 4.5%

We have developed an online tax calculator for help in working out the amount of LBTT payable on lease transactions. This calculator is for reference purposes only.

LBTT(S)A 2013 schedule 19 paragraph 3

LBTT(S)A 2013 schedule 19 paragraph 8

The Land and Buildings Transaction Tax (Tax Rates and Tax Bands) (Scotland) Order 2015

Ref ID: 
LBTT6013
Archive Date: 
9 March 2015
Last updated: 
9 March 2015
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