What taxes apply to property purchases in Scotland or Wales?  

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Stamp Duty Land Tax (SDLT) does not apply to land transactions in Scotland from April 2015 and in Wales from April 2018.

It has been replaced by Land and Buildings Transaction Tax (LBTT) in Scotland and by Land Transaction Tax (LTT) in Wales.

  • If a single transaction includes land in both Scotland and elsewhere in the UK or Wales, LBTT will apply only to the land in Scotland and separate returns must be made for SDLT and LBTT (and Welsh LTT where appropriate from 1 April 2018), and the consideration for the transaction must be apportioned on a “just and reasonable basis”.
  • A transaction to which LBTT applies cannot be a “linked transaction” for SDLT purposes.
  • Some Scottish transactions continued to be subject to SDLT on and after the date of introduction. These include those transactions in which missives were concluded before 1 May 2012 and the effective date is before 1 April 2015, but the transaction becomes notifiable after that date.
  • An additional dwelling supplement of 3% will be introduced for purchases of additional residential property in Scotland, including second homes or buy-to-let investments, from 1 April 2016.

Links

Our practical tax guides Land and Buildings Transaction Tax and LBTT: Additional Dwellng Supplement are in our Scottish Tax section.

The Scottish government publishes information about devolved taxes and the Scottish approach to taxation on its website, www.gov.scot.

 

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