LBTT6013 – Tax rates and bands
For chargeable leases, the following tax rates and bands apply to the Net Present Value (NPV) of the rent payable under the lease:
| NPV of rent payable | LBTT rate |
|---|---|
| Up to £150,000 | 0% |
| Above £150,000 | 1% |
LBTT may also be payable on chargeable consideration other than rent, such as a premium. The standard tax rates and bands for non-residential property transactions apply to any such payments under a lease (except in the case of qualifying leases where there is a premium paid, which will be taxable at the residential rates):
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% |
Transitional Provision
Please note that where the effective date of a land transaction is on or after 25 January 2019 and the contract for the land transaction was entered into prior to 12 December 2018, the tax rates and bands for non-residential transactions that were in force prior to 25 January 2019 will apply.
Further information on this can be found at LBTT4011.
Non-residential rates and bands for transactions prior to 25 January 2019
The Land and Buildings Transaction Tax (Tax Rates and Tax Bands) (Scotland) Order 2015
| Purchase price | LBTT rate |
| Up to £150,000 | 0% |
| Above £150,000 to £350,000 | 3% |
| Above £350,000 | 4.5% |
LBTT(S)A 2013 schedule 19 paragraph 3
LBTT(S)A 2013 schedule 19 paragraph 8
We have developed an online tax calculator for help in working out the amount of LBTT payable on lease transactions. This calculator is for reference purposes only.
Ref ID
LBTT6013
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