Land and Buildings Transaction Tax

Land and Buildings Transaction Tax (LBTT) is a tax charged in Scotland. It replaced the United Kingdom Stamp Duty Land Tax (SDLT) from 1 April 2015.

LBTT is a tax applied to residential and commercial land and buildings transactions (including commercial purchases and commercial leases) where a chargeable interest is acquired. Under the Land and Buildings Transaction Tax (Scotland) Act 2013, a land transaction must be notified to Revenue Scotland unless it falls within one of the exempt categories contained in the Act.

Revenue Scotland administers and collects LBTT with support from Registers of Scotland.

LBTT will usually be paid by the solicitor on behalf of the buyer, as part of the administrative process to complete the conveyancing transaction, although final responsibility lies with the buyer. Submitting an LBTT return and making arrangements to pay the LBTT due is a prerequisite to applying for registration of title. LBTT is a progressive tax, with its structure designed so that the charge is more proportionate to the actual price of the property. The percentage rate for each band in LBTT is applied only to the part of the price over the relevant threshold and up to the next threshold.

Proposals for rates and bands were announced by the Cabinet Secretary for Finance, Employment and Sustainable Growth on 9 October 2014, as part of the annual Draft Budget process and tax calculators are available to help taxpayers and agents determine the amount of LBTT due. The proposed tax rates and bands are subject to consultation and Parliamentary scrutiny through the Draft Budget process, led by the Finance Committee of the Scottish Parliament. The Cabinet Secretary for Finance, Constitution and Economy announced on 21 January 2015 that he had reviewed the proposed rates and bands for residential property transactions. The tax rates and bands are still to be approved by the Scottish Parliament.

...
Wikipedia