Scottish Parliament approves Land and Buildings Transaction Tax (Tax rates and Bands etc) (Scotland) Amendment Order 2018

24 January 2019

The Scottish Parliament has approved the Land and Buildings Transaction Tax (Tax rates and Bands etc) (Scotland) Amendment Order 2018.

The Order implements changes to Land and Buildings Transaction Tax (LBTT) proposed in the Scottish Government’s Budget for 2019-20.

These changes, which come into force on 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 over £40,000).

Revenue Scotland is updating its online guidance to reflect these changes.