Revenue Scotland LBTT: Guide to Completing the ‘About the Conveyance or Transfer’ Section for LBTT Returns

About the Conveyance or Transfer

This section provides guidance on completing the ‘About the Conveyance or Transfer’ part of the online Land and Buildings Transaction Tax (LBTT) return. It covers essential principles and concepts to ensure accurate submission.

• Understand the details required for conveyance or transfer.
• Ensure compliance with LBTT regulations.
• Follow the step-by-step process for online submission.
• Access resources for additional support and clarification.
• Utilise the online platform for efficient tax return management.

Understanding the Land and Buildings Transaction Tax (LBTT) in Scotland

The Land and Buildings Transaction Tax (LBTT) is a tax applied to residential and commercial land and buildings transactions in Scotland. Introduced on 1 April 2015, it replaced the UK Stamp Duty Land Tax (SDLT) in Scotland. This article aims to provide a comprehensive overview of LBTT, including how to complete the ‘About the Conveyance or Transfer’ section of the online LBTT return.

What is LBTT?

LBTT is a progressive tax, meaning that the amount payable increases with the value of the property or land being purchased. It applies to both residential and non-residential transactions, with different rates and bands for each. The tax is payable by the buyer in a property transaction and must be paid within 30 days of the effective date of the transaction.

Residential Transactions

For residential properties, LBTT is calculated based on the purchase price of the property. The rates and bands are designed to ensure that those purchasing higher-value properties pay a higher percentage of tax. The current rates for residential transactions can be found on the Revenue Scotland website.

Non-Residential Transactions

Non-residential transactions include commercial properties and land transactions. The rates and bands for these transactions differ from residential ones and are also available on the Revenue Scotland website.

Submitting an LBTT Return

When a property transaction is completed, the buyer is required to submit an LBTT return to Revenue Scotland. This can be done online, and it is essential to ensure that all sections of the return are completed accurately to avoid any penalties or delays.

About the Conveyance or Transfer

One of the key sections of the LBTT return is the ‘About the Conveyance or Transfer’ section. This part of the form requires specific details about the property transaction, including:

• Property Details: Information about the property being purchased, such as the address and postcode.
• Transaction Details: The date of the transaction and the consideration (price) paid for the property.
• Additional Dwelling Supplement (ADS): If applicable, details about any additional dwelling supplement that may be payable.

For more detailed guidance on completing this section, visit the Revenue Scotland website.

Calculating LBTT

Calculating the amount of LBTT due on a property transaction involves applying the appropriate rates and bands to the purchase price. The calculation is straightforward for most transactions, but there are some scenarios where additional considerations may apply, such as:

• First-Time Buyers: First-time buyers may be eligible for relief, reducing the amount of LBTT payable.
• Additional Dwelling Supplement (ADS): If the property being purchased is an additional dwelling, such as a second home or buy-to-let property, an additional supplement may be payable.

Revenue Scotland provides an online LBTT calculator to help buyers estimate the amount of tax due. This tool can be accessed on the Revenue Scotland website.

Paying LBTT

Once the LBTT return has been submitted, the tax must be paid within 30 days of the effective date of the transaction. Payment can be made online through the Revenue Scotland portal. It is important to ensure that payment is made on time to avoid any interest or penalties.

Penalties for Late Payment

If LBTT is not paid by the due date, penalties and interest may be charged. These can add significant costs to the transaction, so it is crucial to ensure that payment is made promptly. Revenue Scotland provides detailed information on penalties and interest on their website.

Amending an LBTT Return

In some cases, it may be necessary to amend an LBTT return after it has been submitted. This could be due to an error in the original submission or a change in the transaction details. Amendments can be made online through the Revenue Scotland portal, and guidance on how to do this is available on the Revenue Scotland website.

Conclusion

The Land and Buildings Transaction Tax is an essential consideration for anyone purchasing property in Scotland. Understanding how the tax works, how to submit a return, and how to calculate the amount due can help ensure a smooth and efficient property transaction. For more information and guidance, the Revenue Scotland website is an invaluable resource.

Whether you are a first-time buyer, purchasing an additional property, or involved in a commercial transaction, being informed about LBTT can help you navigate the process with confidence and avoid any potential pitfalls.

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

View all LBTT Guidance Pages Here