Stamp Duty In Scotland – LBTT
Stamp Duty In Scotland – LBTT.
What Is LBTT?
Stamp Duty In Scotland
Land and Buildings Transaction Tax must be paid on all properties costing more than £250,000, unless you’re a first-time buyer.
If you’re buying an additional property, you might have to pay an extra 4% on the total purchase price of the property, as well as the standard rates of LBTT.
LBTT applies to both freehold and leasehold properties and whether you’re buying outright or with a mortgage.
Use our Scottish LBTT Calculator to work out what you owe.How Much Is LBTT?
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| £0 | £145,000 | 0% | |||
| £145,001 | £250,000 | 2% | |||
| £250,001 | £325,000 | 5% | |||
| £325,0001 | £750,000 | 10% | |||
| Over £750,000 | 12% |
Stamp Duty On A Second Home.
Buyers of additional residential properties in Scotaland will have to pay an extra 8% stamp duty on a second home costing more than £40,000. Due to the higher threshold where the Additional Dwelling Supplement does apply, the change to the starting threshold will also apply to property transactions.
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| £0 | £145,000 | 8% | |||
| £145,001 | £250,000 | 10% | |||
| £250,001 | £325,000 | 13% | |||
| £325,0001 | £750,000 | 18% | |||
| Over £750,000 | 20% |
* only applies only to the part of the property price falling within each band
** There is 0% tax for additional dwellings purchased for less than £40k. For purchases from £40k and above 8% extra will be added to the standard rate.
Non Residential And Mixed Use Land.
There are also separate rules for what is termed ‘non-residential and mixed use land’, which includes commercial property such as retail units and offices, land used for agriculture and forestry, any non-residential land or six or more residential units that are bought in one transaction.
You pay SDLT on increasing portions of the property price (or ‘consideration’) when you pay: £150,000 or more for non-residential or mixed use land or property.
- The purchase of multiple dwellings
- A home bought by a building company
- An employee’s home bought by his or her employer
- A property bought by a local authority as a compulsory purchase
- The transfer of a property from one company to another
- Charities, right-to-buy or registered social landlords.