Scottish Budget 2023 to 2024 changes to Land and Buildings Transaction Tax (LBTT)

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15 December 2022

The Scottish Government has today announced as part of its 2023 to 2024 Scottish Budget that the rate of Additional Dwelling Supplement (ADS) will increase to 6%. The revised rate will apply to contracts entered into on or after 16 December 2022. For contracts entered into on or before 15 December the previous rate of 4% will apply. 

Revenue Scotland will update the SETS system and its online guidance and calculators in advance of the rate change coming into effect.

Read the full Budget Statement 2023-24.

Draft LBTT returns

If you started a draft tax return prior to 16 December 2022 for:

  • A tax return where the effective date is 15 December 2022 or earlier: the draft can be submitted as the ADS will have been calculated at 4%.
  • A tax return where the effective date is 16 December 2022 or later will need to be recalculated for the system to refresh the ADS to calculate at 6%.
  • A tax return where the effective date is 16 December 2022 or later where the contract is prior to the 15 December 2022: please check the calculation - if required you can make a manual adjustment to the SETS calculation by clicking ‘Edit transaction details’ in the ‘About the transaction’ section of the return.

Please check the expected ADS result prior to submission.

Note: If a PDF version of the original draft return has been created and downloaded from SETS, it will also have a figure of ADS calculated that is based on the previous rate. You may therefore wish to download and save or print a new PDF version of the draft return after updating the tax calculation.

To check if you need to pay the ADS when you buy a residential property in Scotland, please read our general guidance on Additional Dwelling Supplement (ADS).