Revenue Scotland updates guidance on Land and Buildings Transaction Tax
Released 25 January 2019
Revenue Scotland has updated its guidance to reflect the changes to Land and Buildings Transaction Tax (LBTT) rates for non-residential property and second homes.
The changes implemented by the Land and Buildings Transaction Tax (Tax Rates and Tax Bands etc) (Scotland) Amendment Order 2018 (SSI 2018/372), which took effect from 25 January 2019, are:
•to reduce the lower rate of non-residential LBTT from 3% to 1%;
•to increase the upper rate of non-residential LBTT from 4.5% to 5%;
•to reduce the starting threshold of the upper rate of non-residential LBTT from £350,000 to £250,000; and
•to increase the Additional Dwelling Supplement (ADS) rate from three to four percent (payable on purchases of second residential dwellings of £40,000 or over).