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

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...

CORONAVIRUS (COVID-19): the Coronavirus (Scotland) (No 2) Act 2020 received royal assent on 26 May 2020. This includes provisions at part 4 of schedule 4 to extend the time period for selling a previous main residence from 18 to 27 months (where the effective date of the transaction fell within the period beginning 24 September 2018 and ending 24 March 2020) in order to claim repayment of the Land and Buildings Transaction Tax (LBTT) Additional Dwelling Supplement (ADS). See: Revenue Scotland guidance: Coronavirus (Scotland) (No 2) Act 2020 and Second Coronavirus (Scotland) Bill.

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

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