Guide to Submitting, Amending, or Paying LBTT with Revenue Scotland
Submitting, Amending, or Paying LBTT
This page provides practical guidance on handling Land and Buildings Transaction Tax (LBTT) in Scotland. It outlines the processes involved in submitting, amending, or paying LBTT returns.
- Instructions on how to submit an LBTT return.
- Guidance on making amendments to previously submitted returns.
- Information on payment methods and deadlines for LBTT.
- Details on the legal obligations associated with LBTT transactions.
Read the original guidance here:
Guide to Submitting, Amending, or Paying LBTT with Revenue Scotland
Understanding 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 process of submitting, amending, and paying LBTT, ensuring you have all the necessary information to comply with the regulations.
What is LBTT?
LBTT is a tax levied on the purchase of land and buildings in Scotland. It applies to both residential and non-residential transactions. The tax is progressive, meaning the rate increases with the value of the property. The Scottish Government sets the rates and bands, which can differ from those in the rest of the UK.
Residential Transactions
For residential properties, LBTT is calculated based on the purchase price. The tax is structured in bands, with different rates applied to each band. For example, as of the latest update, no tax is paid on the first £145,000 of a property’s price. The next £105,000 is taxed at 2%, and the next £75,000 is taxed at 5%, and so on.
Non-Residential Transactions
Non-residential transactions, which include commercial properties and land purchases, have their own set of bands and rates. The structure is similar to residential transactions but with different thresholds and rates. For instance, no tax is paid on the first £150,000, with subsequent amounts taxed at higher rates.
Submitting an LBTT Return
When you purchase a property in Scotland, you must submit an LBTT return to Revenue Scotland. This is required even if no tax is due. The process is straightforward but must be completed within 30 days of the effective date of the transaction, typically the date of completion.
Online Submission
The most efficient way to submit an LBTT return is online via the Revenue Scotland portal. You will need to create an account if you don’t already have one. The online system guides you through the process, ensuring you provide all necessary information.
Paper Submission
While online submission is encouraged, you can also submit a paper return. This option is less common and may take longer to process. Ensure you download the correct forms from the Revenue Scotland website and send them to the address provided.
Amending an LBTT Return
There may be instances where you need to amend an LBTT return. This could be due to errors in the original submission or changes in the transaction details. Amendments can be made within 12 months of the filing date.
Online Amendments
If you submitted your original return online, you could also make amendments through the same portal. Log in to your account, locate the relevant return, and follow the instructions to make changes. This process is usually quick and straightforward.
Paper Amendments
For paper submissions, you will need to complete an amendment form, which can be downloaded from the Revenue Scotland website. Once completed, send the form to the address provided. Keep in mind that this process may take longer than online amendments.
Paying LBTT
Once you have submitted your LBTT return, you must pay any tax due. Payment should be made within 30 days of the transaction’s effective date to avoid penalties and interest.
Payment Methods
There are several ways to pay LBTT:
- Bank Transfer: This is the most common method. Ensure you use the correct bank details and reference number provided by Revenue Scotland.
- Cheque: You can send a cheque to Revenue Scotland, but this method is less common due to processing times.
- Online Payment: If you submitted your return online, you might have the option to pay through the portal.
Penalties and Interest
Failure to pay LBTT on time can result in penalties and interest charges. It is essential to ensure payment is made promptly to avoid additional costs. If you encounter difficulties, contact Revenue Scotland as soon as possible to discuss your options.
Additional Dwelling Supplement (ADS)
In addition to standard LBTT, an Additional Dwelling Supplement (ADS) may apply if you purchase an additional residential property, such as a second home or buy-to-let investment. ADS is charged at a flat rate on the total purchase price and is payable in addition to the standard LBTT.
Claiming a Refund
If you sell your previous main residence within 18 months of purchasing an additional property, you may be eligible for a refund of the ADS paid. To claim a refund, submit a claim form to Revenue Scotland, providing evidence of the sale and other required information.
Resources and Support
For more information about LBTT, including rates, bands, and guidance on submitting returns, visit the Revenue Scotland website. The site offers comprehensive resources and support to help you navigate the LBTT process.
Professional Advice
If you are unsure about any aspect of LBTT, consider seeking advice from a tax professional or solicitor. They can provide tailored guidance based on your specific circumstances and ensure compliance with all relevant regulations.
Conclusion
Understanding and complying with LBTT requirements is essential for anyone involved in property transactions in Scotland. By familiarising yourself with the process of submitting, amending, and paying LBTT, you can ensure a smooth transaction and avoid unnecessary penalties. Always stay informed about the latest rates and regulations, and seek professional advice if needed.
Useful article? You may find it helpful to read the original guidance here: Guide to Submitting, Amending, or Paying LBTT with Revenue Scotland
If you think you’ve paid too much stamp duty, I might be able to help you reclaim it.
