Land and Buildings Transaction Tax (Scotland) Act 2013 section 24

Tax rates and tax bands

Section 24 establishes the framework for setting LBTT tax rates and tax bands, distinguishing between residential and non-residential property transactions.

• Scottish Ministers must set tax bands and percentage rates by order for both residential and non-residential property transactions.
• Each transaction type must have a nil rate band (at 0%) plus at least two further bands, with rates increasing progressively from one band to the next.
• A transaction is residential if it relates entirely to residential property; it is non-residential if any part of the property involved is not residential.
• Where the consideration for a transaction consists wholly or partly of rent (i.e. a lease), separate tax rates and bands apply under schedule 19 of the Act.