Land and Buildings Transaction Tax (LBTT) is the property tax applied in Scotland when you buy residential or commercial land and buildings.
Introduced in April 2015, LBTT replaced Stamp Duty Land Tax (SDLT) in Scotland. The tax applies to both freehold and leasehold property transactions and is calculated based on the property purchase price.
Please note, our Scottish Land & Buildings Transaction Tax Calculator above, is only suitable for calculations for non-residential purchases.
The current Land and Buildings Transaction Tax rates for non-residential and commercial property transactions in Scotland, as outlined by Revenue Scotland, can be found below.
LBTT uses a progressive tax system, meaning that different portions of the purchase price are taxed at varying rates, depending on thresholds.
For non-residential or commercial property transactions, different thresholds and rates apply, depending on the purchase price and rent value for leases, with rates starting at 0% for properties priced up to £145,000, increasing through each relevant threshold, reaching up to 12% for properties over £750,000.
However, if a property's entire purchase price is less than £150,000, the Land and Building Transactions Tax payable is £0.
For example, if you purchase a commercial property for £425,000, the LBTT is calculated as follows:
In the above example, the total Land and Building Transaction Tax payable will be £9,750.
In the context of Scottish Land and Buildings Transaction Tax, a non-residential property refers to any property or land that is not used primarily for residential purposes.
This includes commercial properties such as shops, offices, and warehouses. Additionally, properties that are unsuitable for residential living, such as industrial units, are also considered non-residential.
Other types of non-residential properties include forests and agricultural land that is part of a working farm or used for farming activities. Additionally, if a transaction involves the purchase of six or more residential properties in a single deal, this is treated as non-residential for LBTT purposes.
Certain special-use buildings are also classified as non-residential, such as homes providing accommodation for children, student halls of residence, care homes, hospitals, hospices, prisons, and hotels or inns. These institutions serve specific purposes beyond typical residential living and are therefore categorised under non-residential properties for LBTT calculation.
In England, Northern Ireland, and Wales, Land and Buildings Transaction Tax (LBTT) does not apply, instead alternative taxes are applied by HMRC or the Welsh Revenue Authority.
To calculate either Stamp Duty Land Tax or Land Transaction Tax using our above Land and Buildings Transaction Tax Calculator, please select either "England, N. Ireland" or "Wales" from the drop down menu when selecting your UK country.
Alternatively, use our dedicated Commercial Stamp Duty Calculator or Land Transaction Tax Calculator for quick and easy tax calculations.
