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Who pays the tax and when is it payable?
The purchaser of the land or buildings is responsible for paying LBTT, which will be payable upon completion of the contract. In circumstances where the buyer takes possession of the land or buildings prior to the completion of the contract, then the tax would be triggered at this time. The amount you pay is dependent on the value of the property. We have provided the current residential rates below.
What are the residential LBTT rates, currently?
£0 – £145,000: Band % Rate of 0
£145,001-£250,000: Band % Rate of 2
£250,001 – £325,000: Band % Rate of 5
£325,001 – £750,000: Band % Rate of 10
£750,001 and over: Band % Rate of 12
What if I am a first-time buyer? Do I still need to pay LBTT?
The simple answer is yes. However, as a first-time buyer, you are entitled to a relief that raises the no-tax-paid threshold from £145,000 to £175,000.
And even if you are liable to pay the tax, a relief will apply to the portion of the price that lies below the threshold. So either way, you will make a small saving!
We understand you will have plenty of questions about Land and Buildings Transaction Tax, alongside many other aspects of the property selling and buying process. The best next step is to get in touch with us and book yourselves in for a consultation with a member of our friendly and conscientious team.
Book a consultation with one of our property solicitors at Shiells by calling 01356 622171
You can also reach us by email or through the form below