For residential property transactions (see LBTT4010 for what constitutes residential property), the rate of tax is determined by reference to percentages of the chargeable consideration (see LBTT2001) for the transaction falling within the bands below.
|Purchase price||LBTT rate|
|Up to £145,000||0%|
|Above £145,000 to £250,000||2%|
|Above £250,000 to £325,000||5%|
|Above £325,000 to £750,000||10%|
If the purchase price is above the nil rate tax band, LBTT is charged at the appropriate rate on the amount of the chargeable consideration within the relevant bands.
For example, a house bought for £330,000 is charged at:
0% for the first £145,000; then
2% for the next £105,000; then
5% for the next £75,000; then
10% for the remaining £5,000.
So £6,350 must be paid in LBTT.
Anything of economic value which is given in exchange for land or property counts as the chargeable consideration (see LBTT2002).
We have developed an online tax calculator on our website for help in working out the amount of LBTT payable on residential transactions. This calculator is for reference purposes only.