Land and Buildings Transaction Tax
- £804 million in LBTT revenues were declared due during 2023/24. This is the third highest annual total, behind 2022/23 (£838 million) and 2021/22 (£813 million). The total LBTT revenue includes £189 million net Additional Dwelling Supplement (ADS) payments, some of which is likely to be reclaimed at a later date.
- In 2023/24, residential conveyances accounted for about three-quarters (76% or £607 million) of total LBTT declared due, non-residential conveyances accounted for 20% (£162 million) and leases accounted for 4% (£34 million). Reviews of a lease accounted for less than 1% (<£1 million).
- The total number of LBTT returns (110,830) received in 2023/24 was 7% lower than in the previous year. There were 8,530 fewer residential conveyance returns, and 530 non-residential conveyance returns received.
Residential Transactions
- £422 million in LBTT revenues from residential conveyances was recorded in 2023/24, excluding ADS. This is 9% lower than in 2022/23 (£466 million) but is the second highest annual total since the introduction of LBTT in 2015/16. However, the number of residential LBTT returns received (94,050) was down 8% from 2022/23 and was the lowest annual total on record.
- 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 2023/24 while making up 16% of residential returns.
- 36% (34,200) of residential returns received in 2023/24 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.
Additional Dwelling Supplement
- £234 million gross ADS was declared due in 2023/24, a 14% increase on the previous year. However, the number of returns with ADS declared due decreased from 24,650 in 2022/23 to 21,090 in 2023/24, a drop of 14%. ADS was declared due for 22% of all residential conveyances in 2023/24, down from 24% in the previous year.
- The ADS rate increased from 4% to 6% on the 16th of December 2022. This increased rate is partially responsible for the increase in gross ADS declared for 2023/24 compared to 2022/23, as the rate was 6% for all of 2023/24 but only part of 2022/23.
- In 81% of residential ADS returns submitted in 2023/24, the taxpayer stated they did not intend to reclaim the ADS declared due, down from 84% in the previous year.
- 85% of ADS reclaims are made within one year of the original transaction.
Non-Residential Transactions
- £158 million LBTT was declared due for non-residential conveyances in 2023/24, excluding ADS. This is a 16% decrease from 2022/23. The number of non-residential conveyance returns dropped by 8% from the previous year to 6,520.
- Almost half (47% or 3,080) of non-residential conveyances in 2023/24 were in the bottom (0%) tax band of £0-£150,000. The top 5% (326) of residential conveyances by total consideration (purchase price) accounted for 75% of non-residential LBTT for conveyances in 2023/24.
Leases
- Leases contributed £34 million LBTT revenue in 2023/24, the highest annual total so far.
- Reviews of a lease accounted for approximately £0.6m of LBTT declared due in 2023/24. This makes up roughly 0.1% of total LBTT for the year.
Sub-Scotland
- The City of Edinburgh accounted for £116 million in residential LBTT revenues (excluding ADS) in 2023/24, 27% of the total. The second largest contributor, Glasgow City, accounted for £34 million (8%), although Glasgow had a higher number of residential returns (10,560) than Edinburgh (10,420).
- The proportion of residential conveyance returns in which the taxpayer declared ADS due, but did not intend to reclaim it, was highest in Na h-Eileanan Siar (31%) and lowest in Midlothian (11%). These figures can be used as a proxy for the percentage of returns which were for second home or rental property purchases.
Reliefs
- £184 millions of LBTT revenue was foregone to reliefs in 2023/24, with around 17,660 returns receiving relief.
- Non-residential transactions accounted for the 80% of revenue forgone to reliefs in 2023/24.
Scottish Landfill Tax
- £69 million of Net SLfT was declared due in 2023/24, a decrease of 38% from 2022/23.
- Standard rate disposals account for 97% of SLfT declared due in 2023/24.
- Standard rate disposals were down from 1,179,200 tonnes in 2022/23 to 693,100 tonnes in 2023/24, a decrease of 41%. Lower rate disposals decreased 11% from 684,600 tonnes in 2022/23 to 607,000 tonnes in 2023/24.