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Land And Buildings Transaction Tax - The Wait Is Over

Land And Buildings Transaction Tax - The Wait Is Over

LBTT rates have been announced by the Scottish Government today and tables showing each of these can be downloaded here.

LBTT will be calculated on a “slab” basis so e.g. for a commercial property priced at £1,000,000 the calculation will be:

  • £150,000  tax free;
  • £200,000 @ 3% =  £6,000;
  • £650,000 @ 4.5% = £29,250

So a total of £35,250 (against SDLT at current rates of £40,000).
The figures favour lower value transactions at the expense of higher rates for more expensive property – that is very apparent for the residential rates, but only kicks in around the £2m mark for commercial property.

LBTT will take effect in Scotland from  April 2015. For more detail on LBTT and how it will affect you please click here to read our earlier blogs, the first on what the tax will mean and second looking in particular at sub-sale transactions.

If you would like furher information please get in touch.

Richard Rennie