Scotland: Land and buildings transaction tax (LBTT)—chargeable consideration and rates of LBTT
Produced in partnership with Ronnie Brown of Burness Paull

The following Tax practice note produced in partnership with Ronnie Brown of Burness Paull provides comprehensive and up to date legal information covering:

  • Scotland: Land and buildings transaction tax (LBTT)—chargeable consideration and rates of LBTT
  • How is LBTT calculated?
  • Chargeable consideration
  • Money, money’s worth and foreign currency
  • Contingent consideration
  • Uncertain or unascertained consideration
  • Annuities
  • Deemed market value
  • VAT
  • Postponed consideration
  • More...

Scotland: Land and buildings transaction tax (LBTT)—chargeable consideration and rates of LBTT

How is LBTT calculated?

The amount of land and buildings transaction tax (LBTT) that is due on a land transaction is calculated by applying the appropriate rate or rates of tax (including a nil rate) to the amount of the chargeable consideration. Where apparently separate transactions are linked by the legislation, the LBTT due has to be calculated as if there were only one transaction.

This Practice Note explains the meaning of chargeable consideration and linked transactions and summarises the applicable rates and bands of LBTT and, where relevant, comparisons between LBTT and stamp duty land tax (SDLT) are highlighted. For details of the equivalent SDLT provisions, see Practice Notes:

  1. SDLT chargeable consideration, and

  2. Rates of SDLT

For further background information about LBTT, see Practice Note: Scotland: Land and buildings transaction tax (LBTT)—the basics.

Chargeable consideration

Chargeable consideration is defined in sections 17–23 and Schedule 2 to the Land and Buildings Transaction Tax (Scotland) Act 2013 (LBTT(S)A 2013). The provisions largely follow the definitions in the equivalent legislation applying to SDLT (for further details, see Practice Note: SDLT chargeable consideration). The following outline draws particular attention to any significant differences between LBTT and SDLT.

Money, money’s worth and foreign currency

The basic definition of chargeable consideration includes ‘any consideration in money or money’s worth given for the subject matter of

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