LBTT4011 - Non-residential or ‘mixed’ land and property rates and bands

LBTT guidance on the tax rates and bands which apply to non-residential property transactions.

For non-residential property transactions (see LBTT4012 for what constitutes non-residential property), the rate of tax is determined by reference to percentages of the chargeable consideration (see LBTT2001) for the transaction falling within the bands below.

LBTT(S)A 2013 section 24

Anything of economic value which is given in exchange for land or property counts towards the chargeable consideration. If the seller has opted to tax, so that VAT is chargeable on the price, LBTT is payable on the price including VAT.

LBTT(S)A 2013 schedule 2

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%

If the value is above the payment threshold, LBTT is charged at the appropriate rate on the amount of the chargeable consideration within that band. For example, an office bought for £465,000 is charged at:

0% for the first £150,000;

1% for the next £100,000;

5% for the remaining £215,000;

So, £11,750 must be paid in LBTT

LBTT(S)A 2013 section 25

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%

If the purchase price is above the nil rate tax band, LBTT is charged at the appropriate rate on the amount of the chargeable consideration within the relevant bands.

For example, an office bought for £465,000 is charged at:

0% for the first £150,000; 

3% for the next £200,000;

4.5% for the remaining £115,000;

So £11,175 must be paid in LBTT.

LBTT(S)A 2013 section 25

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

Ref ID: 
LBTT4011
Archive Date: 
12 December 2018
Last updated: 
12 December 2018

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