Revenue Scotland LBTT: Guide to Submitting, Amending, and Paying Land and Buildings Transaction Tax

Submitting, Amending, and Paying LBTT

This page provides practical guidance on handling Land and Buildings Transaction Tax (LBTT) in Scotland. It covers essential procedures and requirements for submitting, amending, or paying LBTT returns.

• Instructions on how to submit an LBTT return.
• Guidance for amending previously submitted returns.
• Details on making payments for LBTT.
• Information on compliance with Scottish tax regulations.
• Resources for further assistance and support.

Understanding Land and Buildings Transaction Tax (LBTT) in Scotland

Land and Buildings Transaction Tax (LBTT) is a tax applied to residential and commercial land and buildings transactions in Scotland. Introduced in April 2015, LBTT replaced the UK Stamp Duty Land Tax (SDLT) in Scotland. This article provides practical information on how to submit, amend, or pay LBTT, making the process more straightforward for individuals and businesses involved in property transactions.

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 properties and is calculated based on the purchase price. The tax is structured in a progressive manner, meaning that different portions of the property price are taxed at different rates.

Residential Property Rates

For residential properties, LBTT is charged at different rates depending on the price of the property. As of the latest update, the rates are as follows:

• Up to £145,000: 0%
• £145,001 to £250,000: 2%
• £250,001 to £325,000: 5%
• £325,001 to £750,000: 10%
• Over £750,000: 12%

For example, if you purchase a house for £300,000, the LBTT would be calculated as follows:

• The first £145,000 is taxed at 0% = £0
• The next £105,000 (from £145,001 to £250,000) is taxed at 2% = £2,100
• The remaining £50,000 (from £250,001 to £300,000) is taxed at 5% = £2,500

Total LBTT = £0 + £2,100 + £2,500 = £4,600

Non-Residential Property Rates

For non-residential properties, the rates are slightly different:

• Up to £150,000: 0%
• £150,001 to £250,000: 1%
• Over £250,000: 5%

Submitting an LBTT Return

When you purchase a property in Scotland, you are required to submit an LBTT return to Revenue Scotland. This must be done even if no tax is due. The return should be submitted online through the Revenue Scotland portal.

Steps to Submit an LBTT Return

1. Create an Account: If you do not already have an account with Revenue Scotland, you will need to create one. This involves providing some personal details and setting up security information.
2. Log In: Once your account is set up, log in to the Revenue Scotland portal.
3. Complete the Return: Fill out the LBTT return form with details of the transaction, including the property address, purchase price, and date of purchase.
4. Submit the Return: Review the information you have entered and submit the return. You will receive a confirmation once the submission is successful.

For more detailed guidance on submitting an LBTT return, visit the Revenue Scotland website.

Amending an LBTT Return

There may be instances where you need to amend an LBTT return after it has been submitted. This could be due to an error in the original submission or changes in the transaction details.

How to Amend a Return

1. Log In: Access your Revenue Scotland account.
2. Locate the Return: Find the return you wish to amend in your account history.
3. Make Amendments: Update the necessary details in the return form.
4. Resubmit: Once the amendments are made, resubmit the return. You will receive confirmation of the amendment.

Amendments can be made within 12 months of the filing date. For more information on amendments, refer to the official guidance.

Paying LBTT

Once you have submitted your LBTT return, you will need to pay any tax due. Payment must be made within 30 days of the effective date of the transaction.

Payment Methods

There are several ways to pay LBTT:

• Online Payment: The easiest way to pay is through the Revenue Scotland portal using a debit or credit card.
• Bank Transfer: You can also pay via bank transfer. Make sure to include your LBTT reference number in the payment details.
• Cheque: Payment by cheque is possible, but it is the slowest method and should be avoided if a faster option is available.

For detailed payment instructions, visit the Revenue Scotland payment page.

Additional Dwelling Supplement (ADS)

In addition to LBTT, an Additional Dwelling Supplement (ADS) may apply if you are purchasing an additional residential property. This is typically relevant for buy-to-let investors or those buying a second home.

ADS Rates

The ADS is charged at 4% of the total purchase price of the additional property. This is in addition to the standard LBTT rates.

For example, if you purchase a second home for £200,000, the ADS would be £8,000 (4% of £200,000), on top of any LBTT due.

Conclusion

Understanding and managing LBTT is an essential part of purchasing property in Scotland. By following the steps outlined above, you can ensure that you submit, amend, and pay your LBTT correctly and on time. For further assistance, consult the Revenue Scotland website, which provides comprehensive guidance and support for taxpayers.

Useful article? You may find it helpful to read the original guidance here: Revenue Scotland LBTT: Guide to Submitting, Amending, and Paying Land and Buildings Transaction Tax

View all LBTT Guidance Pages Here