In Focus …

Scottish non-residential property transactions – LBTT rates and bands

For non-residential property transactions, the rate of tax is determined by reference to different rates and bands:

Purchase price LBTT rate
Up to £150,000 0%
Above £150,000 to £350,000 3%
Above £350,000 4.5%

LBTT(S)A 2013 section 24 provides for the calculation and section 59(2) sets out what counts as non-residential property.

Where a non-residential transaction involves any element of residential property LBTT(S)A 2013 section 24(4) provides that the transaction will still be as a non-residential property transaction.

Example

If the value is above the payment threshold, LBTT is charged at the appropriate rate on the amount of the chargeable consideration within that band. For example, an office bought for £465,000 is charged at:
• 0% for the first £150,000
• 3% for the next £200,000 and
• then 4.5% for the remaining £115,000
• so £11,175 must be paid in LBTT