Guide to Paying Land and Buildings Transaction Tax Online

How to Pay LBTT

This section provides guidance on paying Land and Buildings Transaction Tax (LBTT) for online returns. It outlines the necessary steps and considerations for taxpayers to ensure compliance with Revenue Scotland’s requirements.

• Understand the LBTT payment process for online submissions.
• Follow the outlined steps to complete your payment accurately.
• Ensure compliance with Revenue Scotland’s guidelines.
• Access additional resources and support if needed.

Understanding How to Pay 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 in Scotland from 1 April 2015. If you’re buying property or land in Scotland, it’s important to understand how LBTT works and how to pay it. This guide will walk you through the process, ensuring you have all the information you need to comply with the tax 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 amount of LBTT you pay depends on the purchase price of the property or land. For residential properties, the tax is calculated on a sliding scale, with different rates applied to different portions of the purchase price.

Residential Property Rates

For residential properties, the LBTT 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:

• 0% on the first £145,000 = £0
• 2% on the next £105,000 (£145,001 to £250,000) = £2,100
• 5% on the remaining £50,000 (£250,001 to £300,000) = £2,500

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

Non-Residential Property Rates

For non-residential properties, the LBTT rates are as follows:

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

For example, if you purchase a commercial property for £400,000, the LBTT would be calculated as follows:

• 0% on the first £150,000 = £0
• 1% on the next £100,000 (£150,001 to £250,000) = £1,000
• 5% on the remaining £150,000 (£250,001 to £400,000) = £7,500

Total LBTT = £0 + £1,000 + £7,500 = £8,500

How to Submit an LBTT Return

Before paying LBTT, you must submit an LBTT return to Revenue Scotland. This is usually done by your solicitor or conveyancer as part of the property purchase process. However, if you’re handling the transaction yourself, you can submit the return online through the Revenue Scotland website.

Steps to Submit an LBTT Return

1. Go to the Revenue Scotland website.
2. Log in to your account or create a new account if you don’t have one.
3. Complete the LBTT return form with details of the transaction, including the purchase price and property address.
4. Submit the form and note the unique transaction reference number (UTRN) provided.

It’s important to submit the LBTT return within 30 days of the effective date of the transaction to avoid penalties.

How to Pay LBTT

Once the LBTT return is submitted, you need to pay the tax due. There are several ways to pay LBTT:

Online Payment

You can pay LBTT online through the Revenue Scotland website using a debit or credit card. This is the quickest and easiest method. Simply log in to your account, navigate to the payment section, and follow the instructions to complete the payment.

Bank Transfer

Alternatively, you can pay by bank transfer. You’ll need the following details:

• Account Name: Revenue Scotland
• Sort Code: 83-06-08
• Account Number: 10880000
• Reference: Your UTRN

Ensure you include your UTRN as the payment reference to ensure the payment is correctly allocated to your transaction.

Cheque Payment

If you prefer, you can pay by cheque. Make the cheque payable to ‘Revenue Scotland’ and write your UTRN on the back. Send the cheque to:

Allow extra time for cheque payments to be processed, especially if you’re close to the payment deadline.

Amending an LBTT Return

If you need to amend an LBTT return after submission, you can do so within 12 months of the filing date. Amendments can be made online through your Revenue Scotland account. Common reasons for amendments include correcting errors or changes in the transaction details.

Steps to Amend an LBTT Return

1. Log in to your Revenue Scotland account.
2. Locate the original LBTT return using the UTRN.
3. Select the option to amend the return.
4. Update the necessary details and submit the amended return.

After submitting an amendment, you’ll receive a confirmation, and any changes to the tax due will be adjusted accordingly.

Additional Resources

For more information on LBTT, including detailed guidance and FAQs, visit the Revenue Scotland LBTT page. You can also contact Revenue Scotland directly for assistance with specific queries.

Understanding and paying LBTT is an essential part of purchasing property in Scotland. By following the steps outlined in this guide, you can ensure a smooth and compliant transaction.

Useful article? You may find it helpful to read the original guidance here: Guide to Paying Land and Buildings Transaction Tax Online

View all LBTT Guidance Pages Here