Guide to Submitting, Amending, and Paying LBTT with Revenue Scotland

Submitting, Amending, and Paying LBTT

This section provides practical guidance on handling Land and Buildings Transaction Tax (LBTT) in Scotland. It covers the essential steps for submitting a return, making amendments, and processing payments. The principles and concepts are outlined below:

• Understanding the LBTT process and its requirements.
• Step-by-step instructions for submitting an LBTT return.
• Guidance on how to amend an existing LBTT return.
• Information on payment methods and deadlines.

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. It replaced the UK Stamp Duty Land Tax (SDLT) in Scotland on 1 April 2015 and is administered by Revenue Scotland. This article provides a comprehensive guide on how to submit, amend, or pay LBTT, making the process straightforward for individuals and businesses alike.

What is LBTT?

LBTT is a tax levied on the purchase of land and buildings over a certain value in Scotland. It applies to both residential and non-residential transactions, with different rates and bands for each. The tax is progressive, meaning that the rate increases with the price of the property.

Residential Transactions

For residential properties, LBTT is calculated based on the purchase price of the property. The rates are structured in bands, similar to income tax. For example, as of 2023, no tax is paid on the first £145,000 of a property’s price. The next portion, up to £250,000, is taxed at 2%, and so on. This structure ensures that those purchasing higher-value properties pay more tax.

Non-Residential Transactions

Non-residential transactions, which include commercial properties and land, have a different set of rates and bands. These transactions are also subject to a progressive tax system, with no tax on the first £150,000, 1% on the next £100,000, and higher rates for amounts above that.

How to Submit an LBTT Return

Submitting an LBTT return is a necessary step in the property transaction process in Scotland. It must be done online through the Revenue Scotland portal. Here’s a step-by-step guide:

1. Create an Account: If you don’t already have an account with Revenue Scotland, you’ll need to create one. This involves providing some basic personal or business 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 transaction.
4. Submit the Return: After completing the form, submit it through the portal. You will receive a confirmation once it has been successfully submitted.

For more detailed guidance, visit the Revenue Scotland LBTT page.

Amending an LBTT Return

Sometimes, you may need to amend an LBTT return after it has been submitted. This could be due to errors in the original submission or changes in the transaction details. Here’s how to amend a return:

1. Log In to Your Account: Access the Revenue Scotland portal using your account credentials.
2. Locate the Return: Find the specific return you wish to amend in your account dashboard.
3. Make the Necessary Changes: Edit the details that need to be corrected or updated.
4. Resubmit the Return: Once the changes are made, resubmit the return. You will receive confirmation of the amendment.

It is important to note that amendments must be made within 12 months of the filing date of the original return.

Paying LBTT

After submitting your LBTT return, the next step is to pay the tax due. Payment can be made through various methods:

• Bank Transfer: This is the most common method. Ensure you include the unique transaction reference number when making the transfer.
• Debit or Credit Card: Payments can also be made using a card through the Revenue Scotland portal.
• Cheque: Although less common, payments can be made by cheque. Ensure it is made payable to ‘Revenue Scotland’ and includes your reference number.

It is important to pay the LBTT by the due date to avoid penalties and interest. The due date is usually within 30 days of the transaction completion date.

LBTT Reliefs and Exemptions

There are certain reliefs and exemptions available for LBTT, which can reduce the amount of tax payable. Some common reliefs include:

• First-Time Buyer Relief: This relief is available for first-time buyers purchasing a residential property, reducing the amount of LBTT payable.
• Multiple Dwellings Relief: This applies when purchasing multiple residential properties in a single transaction.
• Charity Relief: Transactions involving charities may be eligible for relief.

For a full list of reliefs and exemptions, visit the Revenue Scotland Reliefs page.

Conclusion

Understanding and managing LBTT is an essential part of property transactions 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 a tax professional or visit the Revenue Scotland website for more information.

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

View all LBTT Guidance Pages Here