What is LBTT in Scotland?

What is LBTT in Scotland?

Buying a home can be a new experience for many with plenty of hidden regulations, laws and costs. It’s best to be informed going into your purchase and aware of what you need to do after the ink has dried on your contract.

What is LBTT?

If you are in the market for a new home, you may be wondering about Land and Buildings Transaction Tax (LBTT) and what that means for your new purchase. LBTT is a charge applied to land or property purchases in Scotland.

First time buyers can claim relief when buying a property if they intend to use it as their only or main residence, but those buying a second home or a buy-to-let property may need to pay an Additional Dwelling Supplement, which amounts to 4% of the property’s total value.

In saying that, our buyers in Scotland are in luck and can benefit from LBTT contributions on selected homes to make buying that bit easier this year. Our LBTT offer is designed to help buyers with this extra cost incurred when buying a new home and varies for each development or home. If you’d like to find out more about what’s on offer you can explore Scotland East and Scotland West developments near you and pick up the phone to chat with our Development Sales Managers.

Who does LBTT apply to in Scotland?

The tax is applied to residential residents in Scotland and the amount of LBTT you pay on your purchase is linked to the cost of the property, beginning at purchases over £145,000. The system has different rates per band, which we’ve illustrated below for you to check out.

£0 to £145,000 - 0%

£145,001 to £250,000 - 2%

£250,001 to £325,000 - 5%

£325,001 to £750,000 - 10%

Over £750,000 - 12%

Buyers must calculate the amount of LBTT they owe on their property, which is easy to do with Revenue Scotland’s online calculator.

How do I pay my LBTT bill in Scotland?

Buyers can choose to submit their LBTT, but normally the solicitor involved with the purchasing process will take care of this. Homeowners are ultimately responsible for ensuring their LBTT is submitted within the correct timeframe. Even those who are buying a property below the payment threshold of £145,000 and therefore won’t have to pay any LBTT may still have to submit a return, unless exempt from doing so.

Our knowledgeable team of Development Sales Managers are here to take the stress of buying away and guide you through the process, allowing you to relax and focus on settling into your new home.

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