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The rates for Scotland’s land and buildings transaction tax (LBTT) have been announced.
Details of the tax – the first to be introduced by Scottish parliament in 300 years – were unveiled in Scotland’s draft Budget for 2015/16.
The rates for Scotland’s land and buildings transaction tax (LBTT) have been announced.
Details of the tax – the first to be introduced by Scottish parliament in 300 years – were unveiled in Scotland’s draft Budget for 2015/16.
| Cost | Rate |
| Up to £135,000 | nil |
| £135,001 to £250,000 | 2% |
| £250,001 to £1m | 10% |
| Over £1m | 12% |
The LBTT will replace UK stamp duty land tax (SDLT) from April 2015, changing the way people pay levies on property purchases. The new rates will be payable only on the portion of the total value that falls within each band.
The system contrasts with the slab structure of SDLT, under which the higher tax rate is payable on the whole purchase price when a threshold is crossed.
EY tax partner Paul Gallagher claimed the Scottish government has “effectively, and unexpectedly, signalled the creation of a Scottish mansion tax, with homes at the higher end of the market subject to increased taxation.”
He warned that the new system could be bad news for higher value commercial property transactions in Scotland.
“It was expected that the market would pick up following the resolution of the referendum issue, but the rates will lead to markedly higher charges at the higher value end of the market. Even transactions around the £5m mark will see a tax increase of approximately 8%,” said Gallagher.
VAT: a compulsory five pence charge on single-use carrier bags came into effect in Scotland today (20 October 2104), applying to goods supplied in or delivered from the country. Where suppliers are liable to charge VAT, the amount they charge for a bag is tax-inclusive at the standard rate. Non-VAT registered suppliers must charge the minimum amount of 5p. Full details can be found in Revenue and Customs Brief 38/14.
