1. What is LBTT?

The Land and Buildings Transaction Tax (LBTT) is a tax applied to property purchases in Scotland. It replaced the UK Stamp Duty Land Tax (SDLT) for Scottish properties in 2015. The tax is progressive, with different rates applying to different portions of the property price.

2. How LBTT is Calculated

LBTT is calculated using a tiered system where different portions of the property price are taxed at different rates. The formula is:

The calculator automatically applies the correct rates based on:

• Property price
• Property type (residential or non-residential)
• First-time buyer status (for residential properties)

3. Residential Property Rates

Standard Rates:

• £0 - £145,000: 0%
• £145,001 - £250,000: 2%
• £250,001 - £325,000: 5%
• £325,001 - £750,000: 10%
• Over £750,000: 12%

First-Time Buyers: No tax on first £175,000, then normal rates above that.

4. Non-Residential Property Rates

Rates:

• £0 - £150,000: 0%
• £150,001 - £250,000: 1%
• £250,001 - £1,000,000: 5%
• Over £1,000,000: 6%

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between LBTT and SDLT?
A: LBTT applies only in Scotland, while SDLT applies in England and Northern Ireland. They have different rate structures.

Q2: Are there any exemptions?
A: Certain transactions may be exempt, like transfers between spouses or certain types of corporate restructuring.

Q3: When is the tax due?
A: LBTT must be paid within 30 days of the property transaction completion.

Q4: Are there additional taxes for second homes?
A: Yes, there's an Additional Dwelling Supplement (ADS) of 6% on top of LBTT for second homes.

Q5: How accurate is this calculator?
A: This provides an estimate based on standard rates. For complex cases (e.g., mixed-use properties), consult a tax professional.