Executive Summary

£856 million in LBTT revenues were declared due during 2022/23. This record-high figure was driven mainly by residential LBTT and residential ADS, which rose by 12% and 19% respectively. The total LBTT revenue includes £176 million net Additional Dwelling Supplement (ADS) payments, some of which may be reclaimed at a later date.
In 2022/23, residential conveyances accounted for about three-quarters (74% or £638 million) of total LBTT declared due, non-residential conveyances accounted for 22% (£191 million) and leases accounted for 3% (£26 million). Reviews of a lease accounted for less than 1% (£1 million).
The total number of LBTT returns received in 2022/23 was 6% lower than in the previous year. This decrease was mainly driven by a reduction in residential conveyance returns.

A record high (£638 million) for LBTT revenues from residential conveyances was recorded in 2022/23. This tops the previous high (£561 million) recorded in 2021/22. However, the number of residential LBTT returns received was down 7% from 2021/22.
Residential LBTT revenue excluding ADS is dominated by transactions in the £325,000 to £750,000 band, which made up 60% of residential revenue in 2022/23 while making up 16% of residential returns.
37% of residential returns received in 2022/23 were in the nil rate (£0 to £145,000) tax band, the lowest proportion on record, and continuing the year-on-year decrease from 53% in 2015/16.

£206 million gross ADS was declared due in 2022/23, a 9% increase on the previous year. However, the number of returns with ADS declared due decreased from 25,140 to 24,650 in 2022/23. ADS was declared due for 24% of all residential conveyances in 2022/23, up from 23% in the previous year.
The ADS rate increased from 4% to 6% on the 16th December 2022. This increased rate is partially responsible for the increase in gross ADS declared for 2022/23 compared to 2021/22.
In 84% of residential ADS returns submitted in 2022/23, the taxpayer stated they did not intend to reclaim the ADS declared due, equalling the proportion from the previous year.
84% of ADS reclaims are made within one year of the original transaction.

£191 million LBTT was declared due for non-residential conveyances in 2022/23. This is a 16% decrease from 2021/22. However, the number of non-residential transactions remained similar at 7,040.
Each year so far, the largest 5% of transactions have contributed 71% to 75% of total LBTT revenues from non-residential conveyances, with a similar distribution for leases (64% to 74%).

Leases contributed £26 million LBTT revenue in 2022/23, the second highest annual total so far. The highest ever annual total was £29 million in 2018/19.
Both the number of lease returns received and the total LBTT due from leases remained fairly steady in comparison to 2021/22, with both figures increasing only slightly.
Reviews of a lease accounted for approximately £1m of LBTT declared due in 2022/23. This makes up roughly 0.1% of total LBTT for the year.
4,720 LBTT returns for reviews of a lease were received in 2022/23, an increase of 3% from 2021/22. 69% declared no change in LBTT due from the original lease, 19% declared additional LBTT due and 12% resulted in a claim for repayment of LBTT.

The City of Edinburgh accounted for £131 million in residential LBTT revenues (excluding ADS) in 2022/23, 28% of the total. The second largest contributor, Glasgow City, accounted for £37 million (8%), although Glasgow had a higher number of residential returns (11,740) then Edinburgh (11,390).
The proportion of residential conveyance returns in which the taxpayer declared ADS due, but did not intend to reclaim it, was highest in Dundee City (31%) and lowest in Midlothian (11%).

£115 million of potential LBTT revenue was foregone to reliefs in 2022/23, with around 17,850 returns receiving relief. This represents 12% of the total potential LBTT revenue for the year, down from 14% in the previous year.
Non-residential transactions accounted for the 79% of revenue forgone to reliefs in 2022/23.

£110 million of SLfT was declared due in 2022/23, a decrease of 10% from 2021/22.
Standard rate disposals account for 98% of SLfT declared due in 2022/23.
Standard rate disposals were down from 1,312,400 tonnes in 2021/22 to 1,179,200 tonnes in 2022/23, a decrease of 10%. Lower rate disposals increased by 1%.

Annual Summary of Trends in the Devolved Taxes 2022/23