Scotland: Land and buildings transaction tax (LBTT)—the basics
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)—the basics
  • Background to LBTT
  • Commencement of LBTT
  • Transitional provisions
  • Administration of LBTT
  • Rates and structure of LBTT
  • Key concepts of LBTT
  • Land transactions
  • Acquisition
  • Chargeable interest
  • More...

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

Land and buildings transaction tax (LBTT) replaced stamp duty land tax (SDLT) in Scotland with effect from 1 April 2015. This Practice Note provides an introduction to LBTT. Three other Practice Notes focus in more detail on particular aspects of the tax, as follows:

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

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

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

Background to LBTT

The Scotland Act 1998 (SA 1988) created the Scottish Executive (now known as the Scottish government) and the Scottish Parliament. SA 1998 devolved limited powers over income tax to the bodies but these powers were never used. The Scotland Act 2012 (SA 2012) then amended SA 1998 to give further powers to the Scottish Parliament, including wider powers over taxation. In particular, the Scottish Parliament was given power to legislate for a new tax, to be charged on the acquisition of land and buildings, which would replace SDLT in Scotland. In exercise of those powers, the Scottish Parliament passed the Land and Buildings Transaction Tax (Scotland) Act 2013 (LBTT(S)A 2013), which received Royal Assent on 31 July 2013.

Commencement of LBTT

LBTT(S)A 2013 provides for some of its provisions to come into effect immediately and for the remainder to come into effect

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