How do you pay LBTT on a Scottish lease if you do not have a solicitor?

Introduction

People often run into this problem after signing a lease in Scotland. A landlord or the landlord’s solicitor says that Land and Buildings Transaction Tax (LBTT) is payable, but the tenant did not instruct a solicitor and is then unsure how to file the return or make the payment.

This is a common issue with commercial leases. The key point is that the tax may still need to be reported and paid even if no solicitor acted on the transaction. In practice, LBTT lease returns in Scotland are usually submitted online by an authorised agent, commonly a solicitor or accountant registered with Revenue Scotland.

The Question

A tenant entered into a new five-year commercial lease in Scotland. The rent varied from year to year, no premium was paid, and the lease was taken in the name of a company. The landlord’s solicitor said that LBTT of around £1,500 was due for the lease term. The tenant then contacted Revenue Scotland directly but was told that the filing would normally be handled by a solicitor. The tenant wanted to know what options were available where no solicitor had been instructed.

Nick’s Explanation

Nick explained that this is mainly a procedural issue rather than an unusual legal problem. In anonymised form, his answer was that:

“In Scotland, LBTT returns for leases are normally submitted electronically by agents who are registered with Revenue Scotland. These agents are typically solicitors or accountants and can submit the required information on behalf of clients.”

He also pointed out that there are really two separate questions:

• how much LBTT is actually due; and
• how the return and payment are submitted.

Nick noted that Revenue Scotland provides an online lease transaction calculator to help work out the amount payable. He then suggested that, where no solicitor was instructed, the tenant’s accountant may be able to act as the authorised agent and file the LBTT return instead.

He later added that this is a routine process and that it should usually be possible to find an agent to submit the return on the tenant’s behalf.

The Law

LBTT is the Scottish tax charged on land transactions, including the grant of a lease, under the Land and Buildings Transaction Tax (Scotland) Act 2013.

For lease transactions, the tax treatment depends on what is given for the lease. The chargeable consideration can include:

• rent;
• any premium; and
• other forms of consideration, if relevant.

For a lease with rent, the tax is generally calculated by reference to the net present value of the rent over the term of the lease, using the statutory rules. If there is no premium, the main question is usually whether the net present value of the rent exceeds the relevant LBTT threshold for leases.

The tenant is normally responsible for making the LBTT return and paying any tax due. The return must usually be submitted within the statutory filing deadline following the effective date of the transaction. In practice, many returns are filed by solicitors or accountants acting as agents.

Analysis

In a case like this, the position can be worked through in stages.

First, the grant of a new commercial lease is capable of being an LBTT chargeable transaction. The fact that no solicitor acted does not remove the filing obligation.

Second, the amount of tax cannot safely be assumed just because a figure has been mentioned by the landlord’s solicitor. The correct amount depends on the lease terms, especially:

• the length of the term;
• the rent payable in each year;
• whether the rent changes over time;
• whether any premium or lump sum was paid; and
• who the tenant is for the purposes of the return.

Third, where the rent varies from year to year, that variation must be reflected in the calculation. For LBTT on leases, the tax is not simply based on adding up all rent over the term. The legislation uses a net present value approach, which is why the Revenue Scotland lease calculator is useful.

Fourth, the practical filing route matters. In Scotland, lease returns are commonly submitted electronically through Revenue Scotland’s system by registered agents. If the tenant does not have a solicitor, that does not mean the return cannot be filed. It usually means the tenant needs to appoint a suitable agent, often an accountant, to handle the submission.

Fifth, if no reference number or draft return has yet been issued, that is not necessarily a problem. For a new lease, the relevant return can still be prepared from the lease terms and then submitted through the proper channel.

So, on these facts, the likely answer is that the tenant should not focus only on paying a quoted figure. The tenant should first confirm the correct LBTT calculation and then arrange for an authorised agent to file the return and make the payment in the proper way.

Outcome

If you have signed a Scottish lease and no solicitor acted for you, you are not stuck. The usual practical solution is to instruct a registered agent, commonly an accountant or solicitor, to submit the LBTT return on your behalf.

The amount of LBTT should be checked against the actual lease terms rather than assumed from an informal figure. Once the calculation is confirmed, the agent can normally file the return and arrange payment through Revenue Scotland’s system.

Practical Steps

1. Collect the signed lease and confirm the effective date.
2. Check the lease term, the rent for each year, and whether any premium or other lump sum was paid.
3. Use the Revenue Scotland lease calculator to estimate the LBTT position.
4. Contact your accountant and ask whether they are registered to submit LBTT returns to Revenue Scotland.
5. If your accountant cannot do it, instruct a Scottish solicitor or other suitable registered agent who can.
6. Make sure the return is filed within the statutory deadline, because late filing or late payment can lead to penalties and interest.
7. Keep copies of the lease, calculation, return, submission confirmation, and payment record.

Conclusion

Where LBTT is due on a Scottish lease, the absence of a solicitor at the time of signing does not prevent compliance. The practical route is usually to have a registered agent, such as an accountant or solicitor, submit the lease return electronically to Revenue Scotland and arrange payment once the correct amount has been calculated.

Legal References Used

• Land and Buildings Transaction Tax (Scotland) Act 2013
• Revenue Scotland LBTT lease transaction calculator and guidance on lease returns

This page was last updated on 22 March 2026.

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