Land and Buildings Transaction Tax (LBTT) Paid, Scotland

Land and Buildings Transaction Tax (LBTT) is the Scottish equivalent of Stamp Duty and has been in place since 2015. New changes by the Scottish Government now mean that there is no LBTT to pay for first-time buyers on homes up to £175,000, an increase from £145,000.

What is LBTT & why do we have to pay it?

Land and Buildings Transaction Tax (LBTT) is the tax charged by the Government in Scotland when you buy a home for more than £145,000 for existing homeowners and £175,00 for first-time buyers.

When you buy a property the change in land ownership has to be legally registered at the Land Registry. This process requires a certificate from Revenue Scotland – which they will only issue on receipt of the LBTT payment due on the purchase of the property.

The transfer of funds to pay the LBTT will be managed for you by your solicitor.

How much is LBTT?

For first-time buyers:

Purchase price

     LBTT rate

£0 to £175,000

     0%

£175,001 to £250,000

     2%

£250,001 to £325,000

     5%

£325,001 to £750,000

     10%

Over £750,001

     12%

For existing homeowners:

Purchase price

     LBTT rate

Up to £145,000

     0%

£145,001 to £250,000

     2%

£250,001 to £325,000

     5%

£325,001 to £750,000

     10%

Over £750,001

     12%

Buyers of additional residential properties, such as second homes, will have to pay higher rates (+4%) on top of the current rates for each band.

How could we pay it for you?

Legally, the purchaser has to pay the LBTT on their purchase. However, we may be able to contribute towards it for you, up to a maximum of 4% of the purchase price of your new Barratt home – just ask the Sales Adviser at the development.

Should you proceed with this offer, your solicitor will deduct the agreed contribution from the purchase price that is paid to us and allocate it to the LBTT payment on completion of the purchase of your new home.

Click here to read the full Terms & Conditions