Calculations

On 21st January, the Scottish Government confirmed the following revised rates to Land and Buildings Transaction Tax ("LBTT") for residential property purchases in Scotland:

Consideration

 LBTT Rate

Up to £145,000

 0%

£145,000 - £250,000

 2%

£250,000 - £325,000

 5%

£325,000 - £750,000

 10%

£750,000 and over

 12%

 

When do the new LBTT Rates become effective in Scotland?

The new LBTT rates will become effective from 1st April 2015.

Our previous article, Land and Buildings Transaction Tax to replace Stamp Duty, contained the Scottish Government's proposed LBTT rates which were released in October last year.

What are the main property tax changes?

The main changes to note are as follows:

  • A 5% LBTT rate is introduced for any consideration between £250,000 and £325,000;
  • The threshold at which LBTT is payable has changed from £135,000 to £145,000; and
  • The consideration at which the top rate of LBTT is payable has been reduced from £1,000,000 to £750,000.

If you would like to calculate how much will be payable on your proposed residential purchase under the new LBTT rates, please use our Residential Property Purchase Budget Calculator.

What about non residential property purchases?

The LBTT rates for non-residential property and non-residential leases remain as follows:

 

Consideration LBTT Rates
Up to £150,000 0%
£150,000 - £350,000 3%
£350,000 and over 4.5%

Net present value of rent up to £150,000

Net present value of rent over £150,000

0%

1%

Premium up to £150,000 0%

Premium £150,000 - £350,000 3%
Premium £350,000 and over 4.5%

 

If you would like to calculate how much will be payable on your proposed residential purchase under the new LBTT rates, please use our non-residential property purchase budget calculator.

This is intended as a brief overview of some of the costs of purchasing a residential property in Scotland. No responsibility can be taken for any action reliant on this calculation and specialist advice should be sought in every case.

Turcan Connell would be happy to provide such advice.

We’re always happy to discuss things further.
Contact Us
for more information.