Guidance updated to reflect Land and Buildings Transaction Tax (Tax rates and Bands etc) (Scotland) Amendment Order 2018

25 January 2019

Revenue Scotland has updated its guidance to reflect the changes resulting from the Land and Buildings Transaction Tax (Tax rates and Bands etc) (Scotland) Amendment Order 2018 which was approved by the Scottish Parliament on 23 January 2019.

The changes implemented by the Order, which take effect from today (25 January 2019), are :

  • to reduce the lower rate of non-residential LBTT from 3% to 1%;
  • to increase the upper rate of non-residential LBTT from 4.5% to 5%;
  • to reduce the starting threshold of the upper rate of non-residential LBTT from £350,000 to £250,000; and
  • to increase the Additional Dwelling Supplement (ADS) rate from three to four percent (payable on purchases of second residential dwellings of £40,000 or over).

The full list of guidance changed as a result of the Order is as follows:

Additional Dwelling Supplement - Background

LBTT1005 - ​Contract and conveyance

LBTT10001 - LBTT Additional Dwelling Supplement

LBTT10011 - Introduction to the ADS

LBTT10013 - Transactions to which the ADS applies

LBTT10030 - Determining the chargeable consideration for the ADS

LBTT10080 - Transitional Arrangements

LBTT100015 - Transactions involved non-residential properties

LBTT3015 - Multiple dwellings relief

Multiple Dwellings Relief (no ADS payable)

Multiple Dwellings Relief (ADS payable)

LBTT4011 - Non-residential or 'mixed' land and property rates and bands

Calculating Tax - Rates and Bands

LBTT on Property Transactions Calculator

Calculating Tax - Linked Transactions

Leases - LBTT6013 - Tax rates and bands

Calculating Tax - Leases

LBTT on Lease Transactions Calculator

Example 1: Acquisition of a second home

Example 2: Acquisition of a second home within the nil rate band

Example 33: Transactions involving the purchase of residential and non-residential property

Example 34: Purchase of multiple dwellings

Example 35: Purchase of next main residence plus other dwelling, previous main residence being sold

Example 37: Purchase of 5 dwellings

Example 38: Purchase for 4 properties, with the ADS applying to some but not all

Example 73: Reclaiming ADS paid, previous main residence sold within 18 months