LBTT: temporary increase in nil rate band

10 July 2020

10 July 2020

Finance Secretary Kate Forbes announced today (10 July) that a temporary increase in the nil rate band for LBTT residential property transactions from £145,000 to £250,000 will be introduced with effect from next Wednesday (15 July) and remain in place until 31 March 2021.

The revised rates and bands will only apply to transactions with an effective date on or after 15 July 2020.

Rates for the Additional Dwelling Supplement (ADS) and non-residential LBTT remain unchanged.

 Purchase price

LBTT rate

 Up to £250,000

0%

 Above £250,000 to £325,000

5%

 Above £325,000 to £750,000

10%

 Over £750,000

12%

Residential transactions for consideration of £40,000 or more will still require to be notified to Revenue Scotland even if no tax is due.

More information on LBTT is available on the Revenue Scotland website

If you have any questions, please contact Revenue Scotland by email: lbtt@revenue.scot



Additional Notes

Land and Buildings Transaction Tax (LBTT) replaced UK Stamp Duty Land Tax (SDLT) in Scotland from 1 April 2015.

LBTT is a tax applied to residential and commercial land and buildings transactions (including non-residential purchases and leases) where a chargeable interest is acquired.

Revenue Scotland is responsible for collecting and managing LBTT.

LBTT is a self-assessed tax. It is up to the taxpayer to ensure they meet the relevant repayment criteria. Practical and legislative guidance for working with LBTT is available on the Revenue Scotland website