New Land and Buildings Transaction Tax (LBTT) nil rate band

15 July 2020

15 July 2020

The ‘Land and Buildings Transaction Tax (Tax Rates and Tax Bands)(Scotland) Amendment (No.2) (Coronavirus) Order 2020’  has now been approved by the Scottish Parliament and came into effect on 15 July 2020. As a result, there will be a temporary increase in the nil rate band for LBTT residential property transactions from £145,000 to £250,000.

The change will be introduced with effect from Wednesday 15 July 2020 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.

 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.

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

Revenue Scotland has updated its guidance to reflect the changes.

If you have any questions, please contact the Revenue Scotland LBTT team 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