Calculating tax

Calculate LBTT for leases.

 

Online Tax Calculator

Revenue Scotland has an online tax calculator which works out the amount of LBTT payable on a lease transaction. This can also be used for lease review returns.

LBTT on Lease Transactions Calculator

Leases of non-residential property - LBTT rates and bands

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

NPV of rent payable

Rate of tax to apply

Up to £150,000

0%

Above £150,000

1%

LBTT(S)A 2013 schedule 19, paragraph 3-7 provides for the calculation.

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:

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%

Please note that where the ‘relevant rent’ (in other words the average rent) is at least £1,000 per annum, the nil rate tax band does not apply in relation to the premium; all such consideration should be taxed at the tax rate of the next tax band.

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 £250,000 4.5%

LBTT(S)A 2013 Schedule 19 paragraph 8

Calculating tax on a lease review return

The following information will be required to calculate the tax due on a lease review return:

  • The actual amount of rent paid in each of the years preceding the review date;
  • The actual amount of rent payable for each year in the remaining term. If the amount of rent to be paid varies in accordance with the provisions of the lease (for example, where there are rent reviews or in turnover leases), then a reasonable estimate should be provided (see LBTT6005);
  • The amount of any premium paid on the grant of the lease, plus any additional premiums paid, or to be paid, since the last return was submitted; and
  • The amount of tax already paid on the lease, taking account of any adjustments made on previously submitted review returns.
Last updated: 
12 December 2018

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