John Swinney, the Cabinet Secretary for Finance, Employment and Sustainable Growth has announced the proposed rates and bands for the Land and Buildings Transaction Tax (LBTT) as part of the Scottish Draft Budget for 2015-16. The proposed bands and rates will now be subject to parliamentary scrutiny, along with all other elements of the Draft Budget.

View the Scottish Draft Budget for 2015-16 (publication date 9 October 2014)

Background

From 1 April 2015, LBTT will replace UK Stamp Duty Land Tax (SDLT) on land transactions in Scotland, and a body called Revenue Scotland will become the tax authority responsible for the collection and management of the new tax.

LBTT will operate on a different basis to SDLT, and will be calculated in a similar manner to income tax. This means there will be progressive rates of LBTT, with different bands of the purchase price being subject to LBTT at a different rate.

The Scottish Government intends to formally introduce rate-setting Orders and seek the Scottish Parliament’s approval of the proposals in early 2015, after considering the findings of the parliamentary scrutiny process.

The proposed rates and bands for non-residential land or property purchases, non-residential land or property leases, and residential land or property purchases are set out below.

Non-residential land or property purchases: LBTT rates and bands

The proposed rates and bands are as follows:

Click here to view table.

Access further information (including an example calculation and a tax calculator)

Non-residential land or property leases: LBTT rates and bands

It is proposed that the following tax rates and bands will apply to the Net Present Value ("NPV") of the rent payable under the lease:

Click here to view table.

It is proposed that the following tax rates and bands will apply to any premium payable under the lease:

Click here to view table.

Access further information (including a tax calculator)

Residential land or property purchases: LBTT rates and bands

The proposed rates and bands are as follows:

Click here to view table.

Access further information (including an example calculation and a tax calculator)