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Land and Building Transaction tax, which is the Scottish replacement for SDLT, is now chargeable from 1 April 2015.
You have to pay Land and Buildings Transaction Tax (LBTT) if you buy property or land in Scotland above a certain value.
Most people will know it as the tax they may pay when buying a house, but it also applies to non-residential purchases and to leases.
However the rules especially around ADS (see below) can be complex, and legal advice is essential,
LBTT is the Scottish equivalent of Stamp Duty Land Tax (SDLT). It’s a fully devolved tax and the Scottish Government makes decisions about and sets LBTT rates. Announcements made by the UK Government about stamp duty do not apply in Scotland.
Any changes to LBTT are announced as part of the yearly Scottish Budget and must be approved by the Scottish Parliament.
LBTT is administered and collected by Revenue Scotland.
How much you pay: LBTT rates
Use the LBTT calculator on Revenue Scotland’s website to work out how much tax you may need to pay on a property.
You can also get information on rates, bands and how to pay LBTT.
How much you pay depends on the type and value of the property, for example if you are buying a house to live in, a second home or a commercial property. Support is available for first-time buyers in the form of first-time buyer relief.
Revenue Scotland introduced the Additional Dwelling Supplement (ADS) from 1 April 2016, through primary legislation by adding Schedule 2A to the Land and Buildings Transaction Tax (Scotland) Act 2013.
This was in response to the UK Government’s planned introduction of Higher Rates for Additional Dwellings (HRAD) to Stamp Duty Land Tax (SDLT) in England, Wales and Northern Ireland from the same date. Wales then introduced a similar arrangement as part of the Land Transaction Tax (LTT) from April 2018.
The ADS usually applies, when a buyer, or buyers, purchase a dwelling which results in them owning more than one dwelling and they are not replacing their main residence. It is an additional amount of LBTT, charged at 6% of the relevant consideration for a transaction where the total purchase price of an additional dwelling is £40,000 or more.However rthere are many cases which on first glance where it might look inapplicable, but are charegeable. A Limited Company for example buying a residentIal property pays ADS, whetrher it owns any others or not.