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):

Non-residential rates and bands for transactions on or after 25 January 2019

Purchase price LBTT rate
Up to £150,000 0%
Above £150,000 to £250,000 1%
Above £250,000 5%

Transitional Provision 

Please note that where the effective date of a land transaction is on or after 25 January 2019 and the contract for the land transaction was entered into prior to 12 December 2018, the tax rates and bands for non-residential transactions that were in force prior to 25 January 2019 will apply.

Non-residential rates and bands for transactions prior to 25 January 2019

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

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

LBTT(S)A 2013 schedule 19 paragraph 3

LBTT(S)A 2013 schedule 19 paragraph 8

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.

Ref ID: 
LBTT6013
Archive Date: 
12 December 2018
Last updated: 
12 December 2018

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Updated date: 2015-03-23 11:02
Version ID: 719
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