LBTT4009 - Residential land or property rates and bands

LBTT guidance on the tax rates and bands which apply to residential property transactions.

LBTT4009 - Residential land or property rates and bands

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.

LBTT(S)A 2013 section 24

The Land and Buildings Transaction Tax (Tax Rates and Tax Bands) (Scotland) Order 2015

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%
Over £750,000 12%

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.

LBTT(S)A 2013 section 25

Anything of economic value which is given in exchange for land or property counts as the chargeable consideration (see LBTT2002).

LBTT(S)A 2013 schedule 2

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.

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