Instruções passo a passo
Determine the Purchase Price and Applicable Rate
First, determine the purchase price of the property and the applicable LBTT rate based on the purchase price. For example, if the purchase price is £200,000, the applicable rates would be 0% on the first £145,000 and 2% on the remaining £55,000.
Calculate the LBTT
Next, calculate the LBTT by applying the applicable rates to the purchase price. Using the example above, the LBTT would be: (0% x £145,000) + (2% x £55,000) = £0 + £1,100 = £1,100.
Apply First-Time Buyer Relief
If the buyer is a first-time buyer, apply the first-time buyer relief. For example, if the purchase price is £200,000, the first-time buyer relief would be £0, since the purchase price exceeds the relief threshold of £175,000.
Apply Additional Dwelling Supplement (ADS)
If the property is an additional dwelling, apply the ADS of 4% to the purchase price. For example, if the purchase price is £200,000, the ADS would be £8,000.
Calculate the Total LBTT
Finally, calculate the total LBTT by adding the LBTT and the ADS (if applicable). Using the examples above, the total LBTT would be: £1,100 (LBTT) + £8,000 (ADS) = £9,100.
Use a Calculator for Convenience
While it is possible to calculate LBTT manually, it is often more convenient to use a calculator, especially for complex transactions. Our free Scotland property tool can help you calculate LBTT quickly and accurately.
Introduction to LBTT Calculation
The Land and Buildings Transaction Tax (LBTT) is a tax paid on the purchase of properties in Scotland. The calculation of LBTT can be complex, especially with the introduction of the first-time buyer relief and the Additional Dwelling Supplement (ADS). In this guide, we will walk you through the steps to calculate LBTT manually.
Understanding the LBTT Formula
The LBTT formula is as follows: LBTT = (Purchase Price x Rate) - Relief Where:
- Purchase Price is the price paid for the property
- Rate is the applicable LBTT rate based on the purchase price
- Relief is the amount of relief applicable, such as first-time buyer relief
LBTT Rates
The LBTT rates are as follows:
- 0% on the first £145,000
- 2% on £145,001 to £250,000
- 5% on £250,001 to £325,000
- 10% on £325,001 and above
First-Time Buyer Relief
First-time buyers are exempt from LBTT on the first £175,000 of the purchase price.
Additional Dwelling Supplement (ADS)
An ADS of 4% is applicable on the purchase of additional dwellings, such as buy-to-let properties or second homes.