Land and Buildings Transaction Tax (LBTT)
On the transfer of property in Scotland, the Land and Buildings Transaction Tax is:
| Residential | |
|---|---|
| Value up to £145,000 | 0% |
| Over £145,000 - £250,000 | 2% |
| Over £250,000 - £325,000 | 5% |
| Over £325,000 - £750,000 | 10% |
| Over £750,000 | 12% |
| Non-residential | |
|---|---|
| Value up to £150,000 | 0% |
| Over £150,000 - £350,000 | 3% |
| Over £350,000 | 4.5% |
The rates apply to the portion of the total value which falls within each band. Additional LBTT of 3% may apply to the purchase of additional residential properties.
The Scottish government is planning to introduce a new relief for first-time homebuyers for purchases up to £175,000, subject to consultation. Where a property costs more than this amount, first-time buyers will benefit from relief on the portion of the price below the threshold.
Welsh Land Transaction Tax (LTT)
From 1 April 2018, Wales will roll out its own stamp duty equivalent, the Land Transaction Tax (LTT), which preserves the essential structure of SDLT but with some key differences, including a higher starting threshold, together with higher rates of duty for some residential properties with a greater value. The existing first-time buyer exemption will also be removed.
The proposed new LTT rates are:
| Residential (£) | Rate (%) |
|---|---|
| Up to 180,000 | 0 |
| 180,000 - 250,000 | 3.5 |
| 250,000 - 400,000 | 5 |
| 400,000 - 750,000 | 7.5 |
| 750,000 - 1,500,000 | 10 |
| Over 1,500,000 | 12 |
Additional LTT of 3% may apply to the purchase of additional residential properties.
| Non-residential (£) | Rate (%) |
|---|---|
| Up to 150,000 | 0 |
| 150,000 - 250,000 | 1 |
| 250,000 - 1,000,000 | 5 |
| Over 1,000,000 | 6 |
