Revenue Scotland LBTT: Guide to Completing ‘About the Buyer’ Section for LBTT Returns

About the Buyer Section

This section provides guidance on completing the ‘About the Buyer’ part of an online LBTT return. It outlines the necessary information required to accurately fill this section and ensure compliance with Revenue Scotland’s requirements.

• Details on the buyer’s identity and contact information.
• Instructions for entering legal entity details if applicable.
• Guidance on declaring any additional buyers involved in the transaction.
• Clarification on the importance of accurate data entry to avoid penalties.

Understanding the ‘About the Buyer’ Section in Land and Buildings Transaction Tax (LBTT) Returns

When purchasing property in Scotland, one of the key tax obligations is the Land and Buildings Transaction Tax (LBTT). This tax applies to both residential and non-residential property transactions. A critical part of the LBTT process is completing the ‘About the Buyer’ section in the LBTT return. This article will guide you through the process, ensuring you understand what is required and how to submit the necessary information.

What is the Land and Buildings Transaction Tax (LBTT)?

The LBTT is a tax applied to land and property transactions in Scotland. It replaced the UK Stamp Duty Land Tax (SDLT) in Scotland from 1 April 2015. The tax is progressive, meaning the amount payable increases with the price of the property. The LBTT applies to both residential and commercial properties, with different rates and bands for each.

For more detailed information on LBTT rates and thresholds, you can visit the Revenue Scotland LBTT page.

Why is the ‘About the Buyer’ Section Important?

The ‘About the Buyer’ section is a crucial part of the LBTT return. It provides Revenue Scotland with essential details about the individual or entity purchasing the property. This information is used to ensure the correct amount of tax is calculated and collected. Failing to complete this section accurately can lead to delays in processing the return and potential penalties.

Information Required in the ‘About the Buyer’ Section

When completing the ‘About the Buyer’ section, you will need to provide several key pieces of information. Below is a breakdown of the main details required:

1. Buyer Type

You must specify whether the buyer is an individual, a company, or another type of entity. This distinction is important as it affects the tax calculation and any applicable reliefs or exemptions.

2. Buyer Details

For individual buyers, you will need to provide personal details such as full name, address, and contact information. If the buyer is a company, you will need to provide the company name, registered address, and company registration number.

3. Additional Buyers

If there are multiple buyers involved in the transaction, you must provide details for each buyer. This includes their type, personal or company details, and their share in the property.

4. Residency Status

The residency status of the buyer can impact the tax calculation. You will need to declare whether the buyer is a UK resident or a non-resident. This information helps determine if any additional taxes or reliefs apply.

5. Previous Property Ownership

Information about any previous property ownership is required to assess if the Additional Dwelling Supplement (ADS) applies. This supplement is an extra charge for those purchasing additional residential properties.

How to Submit the ‘About the Buyer’ Section

Submitting the ‘About the Buyer’ section is part of the overall process of making an LBTT return. Here’s a step-by-step guide on how to complete and submit this section:

Step 1: Access the LBTT Online Portal

To begin, visit the Revenue Scotland LBTT online portal. You will need to log in or create an account if you do not already have one.

Step 2: Complete the LBTT Return Form

Once logged in, navigate to the LBTT return form. The form is divided into several sections, including the ‘About the Buyer’ section. Ensure you have all the necessary information on hand before you begin.

Step 3: Fill in the ‘About the Buyer’ Section

Carefully input all the required details in the ‘About the Buyer’ section. Double-check the information for accuracy to avoid any processing delays.

Step 4: Review and Submit

After completing all sections of the LBTT return form, review your entries to ensure everything is correct. Once satisfied, submit the form through the online portal.

Step 5: Payment

After submission, you will receive a confirmation and details on how to make the LBTT payment. Ensure payment is made by the due date to avoid penalties.

Common Mistakes to Avoid

Completing the ‘About the Buyer’ section can be straightforward, but there are common mistakes that can lead to issues. Here are some to watch out for:

• Incorrect Buyer Type: Ensure you select the correct buyer type to avoid incorrect tax calculations.
• Incomplete Information: Double-check that all required fields are completed to prevent delays.
• Incorrect Residency Status: Accurately declare the residency status to ensure the correct tax treatment.

Conclusion

Completing the ‘About the Buyer’ section in an LBTT return is an essential step in the property transaction process in Scotland. By understanding the requirements and following the steps outlined in this article, you can ensure a smooth and accurate submission. For more detailed guidance, always refer to the official Revenue Scotland LBTT resources.

Useful article? You may find it helpful to read the original guidance here: Revenue Scotland LBTT: Guide to Completing ‘About the Buyer’ Section for LBTT Returns

View all LBTT Guidance Pages Here