Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 19 paragraph 3

Tax bands and rates for rental transactions

Schedule 19 paragraph 3 requires the Scottish Ministers to set out, by order, the tax bands and percentage rates that apply when the chargeable consideration in a land transaction takes the form of rent.

• Scottish Ministers must specify tax bands and corresponding percentage rates for rent-based chargeable consideration by way of a statutory order.
• There must always be a nil rate band (taxed at 0%) and at least one additional band above it.
• Each successive tax band must carry a higher percentage rate than the band immediately below it, creating a progressive structure.
• The bands and rates are not fixed in the Act itself but are set by ministerial order, allowing them to be updated without primary legislation.