Scotland: Land and buildings transaction tax (LBTT)—chargeable consideration and rates of LBTT

Copyright © 2025 LexisNexis
Produced in partnership with Ronnie Brown of Burness Paull
Practice notes
Scottish Law

Scotland: Land and buildings transaction tax (LBTT)—chargeable consideration and rates of LBTT

Copyright © 2025 LexisNexis

Produced in partnership with Ronnie Brown of Burness Paull

Practice notes
Scottish Law
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FORTHCOMING CHANGE: The Scottish government will consult on (i) a review of LBTT, commencing in spring 2025, to support an evaluation of key aspects of the tax legislation, (ii) draft legislation to provide relief from LBTT on the exchange of units within Co-ownership Authorised Contractual Schemes (CoACS) investing in Scottish property (to provide consistency with existing arrangements in the rest of the UK), and (iii) whether to introduce a LBTT relief for the seeding of properties from existing unauthorised investment vehicles into property authorised investment funds (PAIFs) and CoACS. Legislation will be laid before the Scottish Parliament early in 2025 to provide additional clarity on the clawback arrangements for sub-sale development relief and to provide for the availability of LBTT group relief for non-partition demergers.

How is LBTT calculated?

The amount of land and buildings Transaction tax (LBTT) that is due on a land transaction is calculated by applying the appropriate rate or rates of tax (including a nil rate) to the amount of the chargeable

Ronnie Brown
Ronnie Brown chambers

Burness Paull

Ronnie Brown is Head of Corporate Tax at Burness Paull LLP. In addition to advising on tax aspects on a wide range of corporate and real estate transactions, Ronnie chairs the Law Society of Scotland’s Business and Property Tax sub-committee and is a member of its Working Party on LBTT. He is also a member of the Stamp Taxes Practitioners Group, the Scottish Property Federation, the VAT Practitioners Group and STEP.

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Jurisdiction(s):
United Kingdom
Key definition:
Transaction definition
What does Transaction mean?

The purchase, sale, subscription or underwiting of a particular investment

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