The Land and Buildings Transaction Tax (Tax Rates and Tax Bands) (Scotland) Order 2015

Made17th March 2015

Coming into force1st April 2015

The Scottish Ministers make the following Order in exercise of the powers conferred by section 24(1) of and paragraph 3 of schedule 19 to the Land and Buildings Transaction Tax (Scotland) Act 2013 M1 and all other powers enabling them to do so.

In accordance with section 68(2)(b) and (k) M2 of that Act a draft of this Order has been laid before and approved by resolution of the Scottish Parliament.

Annotations:

Marginal Citations

2013 asp 11.

Section 68 is amended by paragraph 9(16) of schedule 4 to the Revenue Scotland and Tax Powers Act 2014 (asp 16).

Citation, commencement, application and interpretation1

1

This Order may be cited as the Land and Buildings Transaction Tax (Tax Rates and Tax Bands) (Scotland) Order 2015 and comes into force on 1st April 2015.

2

This Order has effect in relation to land transactions in relation to which—

a

the effective date is on or after 1st April 2015; or

b

the LBTT(S) Act 2013 applies by virtue of the Land and Buildings Transaction Tax (Transitional Provisions) (Scotland) Order 2014 M3.

3

In this Order, “the LBTT(S) Act 2013” means the Land and Buildings Transaction Tax (Scotland) Act 2013.

Land and buildings transaction tax rates and tax bands – residential property transactions2

For the purposes of section 24(1)(a) of the LBTT(S) Act 2013 (residential property transactions) the tax bands and the percentage tax rates for each band for residential property transactions are specified in Table A in the Schedule to this Order.

Land and buildings transaction tax rates and tax bands – non-residential property transactions3

For the purposes of section 24(1)(b) of the LBTT(S) Act 2013 (non-residential property transactions) the tax bands and the percentage tax rates for each band for non-residential property transactions are specified in Table B in the Schedule to this Order.

Land and buildings transaction tax rates and tax bands – chargeable consideration which consists of rent4

For the purposes of paragraph 3 of schedule 19 to the LBTT(S) Act 2013 (chargeable consideration which consists of rent) the tax bands and the percentage tax rates for each band applicable to chargeable consideration which consists of rent are specified in Table C in the Schedule to this Order.

JOHN SWINNEY A member of the Scottish Government St Andrew's House, Edinburgh

SCHEDULETAX BANDS AND TAX RATES

Articles 2, 3 and 4

Annotations:

Amendments (Textual)

Sum in sch. Table A substituted (temp.) (15.7.2020) by virtue of The Land and Buildings Transaction Tax (Tax Rates and Tax Bands) (Scotland) Amendment (No. 2) (Coronavirus) Order 2020 (S.S.I. 2020/215), arts. 1(1)(2), 2(1)(2)(a)

Words in sch. Table A omitted (temp.) (15.7.2020) by virtue of The Land and Buildings Transaction Tax (Tax Rates and Tax Bands) (Scotland) Amendment (No. 2) (Coronavirus) Order 2020 (S.S.I. 2020/215), arts. 1(1)(2), 2(1)(2)(b)

Word in sch. Table A substituted (temp.) (15.7.2020) by virtue of The Land and Buildings Transaction Tax (Tax Rates and Tax Bands) (Scotland) Amendment (No. 2) (Coronavirus) Order 2020 (S.S.I. 2020/215), arts. 1(1)(2), 2(1)(2)(c)

F10

F11

Sum in sch. Table B substituted (25.1.2019) by The Land and Buildings Transaction Tax (Tax Rates and Tax Bands etc) (Scotland) Amendment Order 2018 (S.S.I. 2018/372), arts. 1(1), 2(a) (with arts. 1(2), 4)

Percentage in sch. Table B substituted (25.1.2019) by The Land and Buildings Transaction Tax (Tax Rates and Tax Bands etc) (Scotland) Amendment Order 2018 (S.S.I. 2018/372), arts. 1(1), 2(c) (with arts. 1(2), 4)

Words in sch. Table C inserted (7.2.2020) by The Land and Buildings Transaction Tax (Tax Rates and Tax Bands) (Scotland) Amendment Order 2020 (S.S.I. 2020/24), arts. 1(1), 2(a) (with arts. 1(2), 3)

Words in sch. Table C inserted (7.2.2020) by The Land and Buildings Transaction Tax (Tax Rates and Tax Bands) (Scotland) Amendment Order 2020 (S.S.I. 2020/24), arts. 1(1), 2(b) (with arts. 1(2), 3)

Table A: Residential

	Relevant consideration	Percentage
nil rate band	Not more than ~~F7£145,000~~F7£250,000	0%
~~F8first tax band~~	~~F8More than £145,000 but not more than £250,000~~	~~F82%~~
~~F9second~~F9first tax band	More than £250,000 but not more than £325,000	5%
~~F10third~~F10second tax band	More than £325,000 but not more than £750,000	10%
~~F11fourth~~F11third tax band	More than £750,000	12%

Table B: Non-residential

	Relevant consideration	Percentage
nil rate band	Not more than £150,000	0%
first tax band	More than £150,000 but not more than F1£250,000	F31%
second tax band	More than F2£250,000	F45%

Table C: Rent

	Net present value (NPV) of rent payable	Percentage
nil rate band	Not more than £150,000	0%
first tax band	More than £150,000 F5but not more than £2 million	1%
F6second tax band	More than £2 million	2%

(This note is not part of the Order)

This Order specifies the first tax rates and tax bands for land and buildings transaction tax, which is introduced by the Land and Buildings Transaction Tax (Scotland) Act 2013 (“the LBTT(S) Act 2013”) and which, subject to the transitional provisions mentioned in article 1(2)(b), has effect in relation to land transactions on or after 1st April 2015. Separate tax bands and tax rates apply for:

residential property transactions (see Table A in the Schedule);
non-residential property transactions (see Table B in the Schedule); and
chargeable consideration which consists of rent (and therefore which is only relevant in the case of leases; see Table C in the Schedule).

Tax is to be calculated by reference to sections 25 and 26 of the LBTT(S) Act 2013 and, in the case of rent, Part 2 of schedule 19 to that Act. By virtue of section 24(4) of the LBTT(S) Act 2013, transactions involving a mixture of residential and non-residential property are treated as non-residential property transactions (accordingly Table B will apply). Where a premium is paid for the acquisition of a lease the premium will be taxed separately from any chargeable consideration which consists of rent, according to the applicable rates and bands in Table A or Table B.