Are you buying land or building in the UK?
Stamp Duty Land Tax (SDLT) and Land Buildings Transaction (LBT) Tax and Land Transaction Tax (LTT) explained.
First of all, don’t worry – not all of these will apply to you! Depending on which part of the UK you want to build, different rules apply in relation to so-called purchase taxes.
Scotland: For LBTT see Revenue.scot
England and Northern Ireland: For SDLT see Gov.uk
Wales: For Land Transaction Tax see Gov.Wales.
IMPORTANT NOTICE: In addition to following the above links for current information, we would recommend discussing these aspects with your selected professional financial advisor.
Land Buildings Transaction Tax in Scotland:
In Scotland, the Land and Buildings Transaction Tax (LBTT) is a tax applied to residential and non-residential land and buildings transactions (including commercial leases).
LBTT is administered by Revenue Scotland, with support from Registers of Scotland (RoS).
Tax is payable at different thresholds or rates on each portion of the purchase price within specified tax bands. As well as this, the Additional Dwelling Supplement may apply.
For detailed information, including thresholds, guidance on how to submit or amend a tax return, guidance on reliefs and exemptions and worked examples can be found on the Revenue Scotland website. Tax calculators based on current rates and statistics on LBTT transactions and revenues are also available.
Stamp Duty Land Tax in England and Northern Ireland:
Stamp Duty Land Tax (SDLT) applies in England and Northern Ireland when you buy a freehold property, buy a new or an existing leasehold, or buy a property through a shared ownership scheme or are transferred land or property in exchange for payment, e.g. you take on a mortgage or buy a share in a house.
You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland. There are thresholds and conditions that apply to SDLT so make sure you check these out at the www.gov.uk website.
Land Transaction Tax in Wales:
In Wales, a Land Transaction Tax is paid.
As with other parts of the UK, there are specific thresholds and conditions that apply with LTT, so follow the link to the www.gov.wales website.
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