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

How to Submit an Online LBTT Return

This section provides guidance on submitting an online Land and Buildings Transaction Tax (LBTT) return through Revenue Scotland’s platform. It outlines the necessary steps and requirements for successful submission.

• Understand the LBTT return process and its importance.
• Ensure all required information is accurately completed.
• Follow the online submission procedure step-by-step.
• Learn how to amend or pay the LBTT if needed.
• Access support resources for any submission issues.

Understanding Land and Buildings Transaction Tax (LBTT) in Scotland

Land and Buildings Transaction Tax (LBTT) is a tax applied to residential and non-residential land and property 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 essentials of LBTT, including how it works, who it affects, and how to submit an LBTT return online.

What is LBTT?

LBTT is a tax payable on the purchase of land or property in Scotland. It applies to both residential and commercial properties and is calculated based on the purchase price. Unlike SDLT, which applies across the UK, LBTT is specific to Scotland and has its own rates and bands.

How LBTT is Calculated

The amount of LBTT you pay depends on the purchase price of the property. The tax is calculated using a progressive rate system, meaning different portions of the property price are taxed at different rates. Here are the current rates for residential properties:

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

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

For example, if you purchase a residential property 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 payable = £4,600

Additional Dwelling Supplement (ADS)

If you are purchasing an additional residential property, such as a second home or buy-to-let, you may be liable for the Additional Dwelling Supplement (ADS). This is an extra charge on top of the standard LBTT rates, currently set at 4% of the total purchase price.

Submitting an LBTT Return

When you purchase a property, you or your solicitor must submit an LBTT return to Revenue Scotland. This is required even if no tax is due. The return must be submitted and any tax paid within 30 days of the effective date of the transaction, which is usually the date of completion.

Online Submission

Submitting an LBTT return online is straightforward. Here’s how you can do it:

1. Visit the Revenue Scotland website.
2. Log in to your account or create a new one if you don’t have an account.
3. Complete the online LBTT return form with details of the transaction.
4. Submit the form and make the payment if applicable.

For more detailed guidance, you can visit the Revenue Scotland website.

Amending an LBTT Return

If you need to amend a previously submitted LBTT return, you can do so online. Amendments can be made within 12 months of the filing date. This might be necessary if there was an error in the original submission or if circumstances have changed.

Paying LBTT

Once you have submitted your LBTT return, you need to make the payment. This can be done online through the Revenue Scotland portal. It’s important to ensure that the payment is made within the 30-day deadline to avoid any penalties or interest charges.

Exemptions and Reliefs

There are certain exemptions and reliefs available that can reduce the amount of LBTT payable. For example, transactions involving charities or certain types of property transfers may qualify for relief. It’s worth checking the Revenue Scotland website to see if any exemptions or reliefs apply to your situation.

Conclusion

Understanding and managing LBTT is an important part of purchasing property in Scotland. By knowing the rates, how to submit a return, and making timely payments, you can ensure a smooth transaction process. For more information, guidance, and resources, visit the Revenue Scotland website.

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

View all LBTT Guidance Pages Here