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

About the Seller Section

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

• Details required about the seller, including personal and contact information.
• Instructions on how to input seller data correctly in the LBTT return form.
• Explanation of the importance of accuracy in the seller’s information for tax purposes.
• Guidance on common issues and how to resolve them during the submission process.

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 aims to provide a comprehensive overview of LBTT, including how it works, who it affects, and how to complete the necessary paperwork.

What is LBTT?

LBTT is a tax levied on the purchase of land and buildings in Scotland. It is similar to the Stamp Duty Land Tax (SDLT) in the rest of the UK but has different rates and bands. The tax is progressive, meaning that the rate increases as the price of the property increases. This ensures that those purchasing more expensive properties pay a higher rate of tax.

How is LBTT Calculated?

LBTT is calculated based on the purchase price of the property. The tax is structured in bands, with different rates applied to each band. For example:

• For residential properties, the first £145,000 is tax-free.
• The next £105,000 (from £145,001 to £250,000) is taxed at 2%.
• The portion from £250,001 to £325,000 is taxed at 5%.
• The portion from £325,001 to £750,000 is taxed at 10%.
• Any amount over £750,000 is taxed at 12%.

For non-residential properties, the bands and rates are different. It’s important to check the current rates on the Revenue Scotland website as they can change.

Who Pays LBTT?

LBTT is paid by the buyer of the property. It is a one-time payment made at the time of purchase. If you are buying a property in Scotland, you will need to budget for this tax in addition to the purchase price of the property.

How to Complete an LBTT Return

When you purchase a property, you must submit an LBTT return to Revenue Scotland. This is a legal requirement, even if no tax is due. The return provides details about the transaction and the parties involved.

About the Seller Section

One of the sections you will need to complete is the ‘About the Seller’ section. This part of the form requires information about the seller of the property. You will need to provide:

• The seller’s name and address
• The seller’s contact details
• Any additional information required by Revenue Scotland

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

Submitting the LBTT Return

Once you have completed the LBTT return, you need to submit it to Revenue Scotland. This can be done online through their website. You will need to create an account if you do not already have one. Once submitted, you will receive a unique transaction reference number, which you should keep for your records.

Paying LBTT

After submitting the return, you will need to pay any LBTT due. Payment can be made online through the Revenue Scotland website. It is important to pay the tax by the due date to avoid penalties and interest charges.

Amending an LBTT Return

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

To amend a return, log into your account on the Revenue Scotland website and follow the instructions for submitting an amendment. More information can be found on the Revenue Scotland website.

Exemptions and Reliefs

There are certain situations where you may be eligible for an exemption or relief from LBTT. For example, first-time buyers purchasing a property up to £175,000 may be eligible for relief, reducing the amount of tax payable. Other reliefs may apply to certain types of transactions, such as transfers of property between spouses or civil partners.

To find out more about exemptions and reliefs, visit the Revenue Scotland website.

Conclusion

Understanding LBTT is essential for anyone involved in buying property in Scotland. By familiarising yourself with the rates, bands, and processes involved, you can ensure that you meet your tax obligations and avoid any unnecessary penalties. For more detailed information, always refer to the official Revenue Scotland website.

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

View all LBTT Guidance Pages Here