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

Scottish Statutory Instruments

2015 No. 126

Land And Buildings Transaction Tax

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

Made

17th March 2015

Coming into force

1st 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.

Marginal Citations

M1 2013 asp 11.

M2 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 interpretation S

1.—(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.

Marginal Citations

M3 S.S.I. 2014/377.

Land and buildings transaction tax rates and tax bands – residential property transactions S

2.  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 transactions S

3.  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 rent S

4.  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

Articles 2, 3 and 4

SCHEDULE S TAX BANDS AND TAX RATES

Table A: Residential

	Relevant consideration	Percentage
nil rate band	Not more than [F1 £145,000] [F1 £250,000]	0%
[F2 first tax band]	[F2 More than £145,000 but not more than £250,000]	[F2 2%]
[F3 second] [F3 first] tax band	More than £250,000 but not more than £325,000	5%
[F4 third] [F4 second] tax band	More than £325,000 but not more than £750,000	10%
[F5 fourth] [F5 third] tax band	More than £750,000	12%

Textual Amendments

F1 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)

F2 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)

F3 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)

F4 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)(d)

F5 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)(e)

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 [F6 £250,000]	[F7 1%]
second tax band	More than [F8 £250,000]	[F9 5%]

Textual Amendments

F6 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)

F7 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)

F8 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(b) (with arts. 1(2), 4)

F9 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(d) (with arts. 1(2), 4)

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 [F10 but not more than £2 million]	1%
[F11 second tax band	More than £2 million	2% ]

Textual Amendments

F10 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)

F11 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)

Explanatory Note

(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.