Question ref. S5W-35042
Asked by: Pauline McNeill, Glasgow, Scottish Labour
Date lodged: 8 February 2021
To ask the Scottish Government whether the new Land and Buildings Transaction Tax (LBTT) takes effect on or before the signing of missives prior to registration on the land register.
Current status: Answered by Ivan McKee on 16 February 2021
As confirmed in Scottish Budget 2021-22, the ceiling of the nil rate band for residential Land and Buildings Transaction Tax (LBTT) will return to £145,000 for transactions with an effective date from 1 April 2021.
The effective date of a transaction is the point at which the liability to LBTT arises. In general terms, for residential LBTT this is the date that the purchase price for a home is paid by the buyer in exchange for the seller delivering the keys and disposition. As such, where missives are signed prior to 1 April 2021 but the effective date of a transaction occurs on or after 1 April 2021, the £145,000 nil rate band will apply.
An LBTT return must be submitted to Revenue Scotland and payment of any LBTT due made before the Keeper of the Registers of Scotland can proceed with registration of title .