This Table considers how land and buildings transaction tax (LBTT) applies to common lease transactions. For more detailed commentary on LBTT generally, see Practice Notes:

1. •

   Scotland: Land and buildings transaction tax (LBTT)—the basics

2. •

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

3. •

   Scotland: Land and buildings transaction tax (LBTT)—particular transactions and taxpayers

4. •

   Scotland: Land and buildings transaction tax (LBTT)—administration and compliance

LBTT is payable on leases of Scottish property in broadly similar fashion to stamp duty land tax (SDLT) on leases of English property with one significant exception—leases of residential property are exempt from LBTT unless:

1. •

   the transaction involves six or more residential properties in which case, it will be treated as if it were non-residential property and subject to LBTT accordingly

2. •

   the transaction involves a mix of residential and non-residential property in which case, it will also be treated as non-residential property, and

3. •

   the lease is a long lease which meets the qualifications of section 1 of the Long Leases (Scotland)