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 Residential Property

Generally, leases of residential property are exempt from LBTT - LBTT(S)A 2013 schedule 1, paragraph 3. Our legislation guidance explains the position of those exceptional types of residential leases which are chargeable to LBTT in the same way as non-residential leases.

Leases of Non-residential Property – LBTT Rates and Bands

In her Budget statement to Parliament on 06 February 2020, the Minister for Public Finance & Digital Economy, Kate Forbes, proposed changes to LBTT tax rates and bands for non-residential lease transactions. These changes take effect from 07 February 2020.

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

Rates and bands for lease transactions with an effective date on or after 07 February 2020

 NPV of rent payable  Rate of tax to apply
 Up to £150,000  0%
 Above £150,000 to £2,000,000  1%
 Above £2,000,000  2%

Rates and bands for lease transactions with an effective date prior to 07 February 2020

 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.

Transitional Provisions

Where the effective date of a lease transaction is on or after 07 February 2020 and the agreement for lease/missives of let for the lease transaction were entered into on or before 05 February 2020, the tax rates and bands for lease transactions that were in force prior to 07 February 2020 will apply.

Please see LBTT6040 for more information.

Further lease returns

The new bands and rates which take effect from 07 February 2020, will not apply to further returns made in connection with the three-year review, assignation or termination of a lease where the effective date is before 7 February 2020.

Lease Premiums 

LBTT may also be payable on chargeable consideration other than rent, such as a premium. In such cases, the standard tax rates and bands for non-residential property transactions apply to any payments other than rent under a lease:

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%

Transactions prior to 25 January 2019

 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 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.
  • The effective date of the lease and the rate of tax that applied at that date.
Last updated: 
6 February 2020

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