Land & Building Transaction Tax (LBTT)
From 1st April 2015 all properties sold in Scotland need to pay Land & Buildings Transaction Tax (LBTT), which replaced Stamp Duty Land Tax. LBTT is paid based on the following bands, however only the portion of the selling price above each threshold commands that tax rate.
Residential Property Transactions – LBTT Rates and Bands
For residential property transactions, the rate of tax is determined by reference to the amount of the chargeable consideration for the transaction falling within the bands below:
Purchase Price |
LBTT rate |
Up to £145,000 |
0% |
Above £145,000 to £250,000 |
2% |
Above £250,000 to £325,000 |
5% |
Above £325,000 to £750,000 |
10% |
Over £750,000 |
12% |
LBTT(S)A 2013 section 24 provides for the calculation and
section 59(1) sets out what counts as residential property. If
the purchase price is above the nil rate tax band of £145,000,
LBTT is charged at the appropriate rate on the amount of the
chargeable consideration within the relevant bands. For example,
a house bought for £280,000 is charged at:
• 0% for the first £145,000, then
• 2% for the next £105,000
• 5% for the next £30,000 and
• so £3,600 must be paid in
LBTT
Consideration genuinely attributable to moveable property is not
included within chargeable consideration. Moveable property
includes fixtures and fittings e.g. curtains and furniture.