Completing an LBTT transaction

What is a land transaction?

A land transaction is the acquisition of a chargeable interest, such as the purchase of a house. A land transaction must be notified to Revenue Scotland unless it falls within one of the exempt categories in Schedule 1 of the Act.

What is the effective date ?

The effective date is the completion date of a contract for a purchase of land and buildings (usually the date a purchaser pays the price to the seller for the property and in exchange receives the title deeds and keys). For contracts entered into on or after 1 May 2012, which tax is payable will depend on the effective date, or dates, of the land transaction.

What is the relevant date?

The relevant date has a different meaning in relation to each of the nine different provisions under which an LBTT return is required. A full list of these can be found in our guidance on how to complete an LBTT return.

How does the Act apply to lease transactions?

Generally, leases of residential property will be exempt from LBTT. For non-residential leases, Schedule 19 of the Act will apply. LBTT will be charged on both the rent and any other consideration paid for the lease. The LBTT on the rent will be payable on the net present value of the rent, and will be subject to a three yearly review that will ensure that the LBTT paid reflects the rent paid.

How do I submit a return and pay LBTT?

LBTT returns can be submitted using our online portal. We have developed detailed guides on ‘how to sign up to the portal’ as well as ‘how to submit an online return’ and ‘how to pay LBTT’ to provide you with further information about the process.

If you wish to submit a manual return, a paper LBTT form is also available along with a guide for ‘how to make a paper return’. However, if you choose this route you will only be able to pay LBTT by cheque.

Last updated