Non-residential property
You pay LBTT on increasing portions of the property price when you pay £150,000 or more for non-residential or mixed (also known as ‘mixed use’) land or property.
Non-residential property includes:
- commercial property, for example shops or offices
- property that isn’t suitable to be lived in
- forests
- agricultural land that’s part of a working farm or used for agricultural reasons
- 6 or more residential properties bought in a single transaction
Non-residential property rates and bands
The non-residential LBTT rates and bands were changed with effect from 25 January 2019.
Non-residential rates and bands for transactions on or after 25 January 2019
|
Purchase price |
LBTT rate |
|---|---|
|
Up to £150,000 |
0% |
|
Above £150,000 to £250,000 |
1% |
|
Above £250,000 |
5% |
If the consideration is above the upper amount of the nil rate band, LBTT is charged at the appropriate rate on the amount of the chargeable consideration within that band.
For example, an office bought for £465,000 is charged at:
1% for the next £100,000;
5% for the remaining £215,000;
So, £11,750 must be paid in LBTT
Non-residential rates and bands for transactions prior to 25 January 2019
|
Purchase price |
LBTT rate |
|---|---|
|
Up to £150,000 |
0% |
|
Above £150,000 to £350,000 |
3% |
|
Above £350,000 |
4.5% |
If the consideration is above the nil rate band, LBTT is charged at the appropriate rate on the amount of the chargeable consideration within the relevant bands.
For example, an office bought for £465,000 is charged at:
The Land and Buildings Transaction Tax (Tax Rates and Tax Bands) (Scotland) Order 2015
Use the LBTT calculator to work out how much tax you’ll pay.
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