Revenue Scotland LBTT: Guide to Completing ‘About the Property’ Section in Online LBTT Return

About the Property Section

This section provides guidance on completing the ‘About the Property’ part of the online Land and Buildings Transaction Tax (LBTT) return. It outlines the necessary details required to ensure accurate submission.

• Understand the specific property information needed for the LBTT return.
• Ensure all details are accurate to avoid submission errors.
• Follow the step-by-step instructions for completing the section.
• Learn about common mistakes and how to avoid them.

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. It replaced the UK Stamp Duty Land Tax (SDLT) in Scotland from 1 April 2015. This article will guide you through the basics of LBTT, how it works, and how to complete the ‘About the Property’ section of the online LBTT return.

What is LBTT?

LBTT is a tax that buyers pay when purchasing property or land over a certain price in Scotland. It applies to both residential and non-residential transactions. The tax is progressive, meaning the rate of tax increases with the value of the property or land.

Residential Transactions

For residential properties, LBTT is charged at different rates depending on the price of the property. The rates are structured in bands, similar to income tax, where you pay a percentage on the portion of the property price that falls within each band.

Non-Residential Transactions

For non-residential properties, which include commercial properties and land, a different set of rates and bands apply. These transactions may also incur a tax on leases, which is calculated differently from purchases.

How is LBTT Calculated?

LBTT is calculated based on the purchase price of the property or land. The tax is divided into bands, with each band having a different tax rate. Here is a simplified example:

• For a residential property priced at £300,000, the LBTT would be calculated as follows:
• 0% on the first £145,000 = £0
• 2% on the next £105,000 (from £145,001 to £250,000) = £2,100
• 5% on the remaining £50,000 (from £250,001 to £300,000) = £2,500
• Total LBTT = £4,600

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

Submitting an LBTT Return

When purchasing property or land in Scotland, you must submit an LBTT return to Revenue Scotland. This is required even if no tax is due. The process can be completed online, and it’s important to ensure all sections are accurately filled out.

About the Property Section

One of the key sections of the LBTT return is the ‘About the Property’ section. This section requires detailed information about the property being purchased. Here’s what you need to know:

• Property Address: Provide the full address of the property, including postcode.
• Property Type: Indicate whether the property is residential or non-residential.
• Property Value: Enter the purchase price of the property.
• Additional Information: Include any other relevant details, such as whether the property is a new build or an existing structure.

For a step-by-step guide on completing this section, you can refer to the Revenue Scotland guide.

Amending an LBTT Return

If you need to make changes to an LBTT return after it has been submitted, you can do so by amending the return. This might be necessary if there was an error in the original submission or if circumstances have changed.

How to Amend a Return

To amend a return, log into your Revenue Scotland account and navigate to the relevant return. From there, you can make the necessary changes and resubmit the return. It’s important to ensure that all amendments are accurate and submitted within the required timeframe.

Paying LBTT

Once your LBTT return is submitted, you must pay any tax due. Payment can be made online through the Revenue Scotland portal. It’s crucial to pay the tax by the deadline to avoid penalties or interest charges.

Payment Methods

Revenue Scotland accepts various payment methods, including bank transfer and online payment. Ensure you have your payment reference number handy when making the payment to ensure it is correctly allocated to your return.

Conclusion

Understanding and complying with LBTT requirements is essential for anyone involved in property transactions in Scotland. By familiarising yourself with the process and using the resources available on the Revenue Scotland website, you can ensure a smooth transaction and avoid any unnecessary complications.

For further information and assistance, you can visit the official Revenue Scotland LBTT page or contact their support team for guidance.

Useful article? You may find it helpful to read the original guidance here: Revenue Scotland LBTT: Guide to Completing ‘About the Property’ Section in Online LBTT Return

View all LBTT Guidance Pages Here