Revenue Scotland and Tax Powers Act 2014 section 169

Land and buildings transaction tax: amounts of penalties for failure to pay tax

Section 169 sets out the escalating penalty charges that apply when land and buildings transaction tax remains unpaid beyond the due date.

• An initial penalty of 5% of the unpaid tax is charged once the payment deadline has passed
• A further 5% penalty is charged on any amount still unpaid 5 months after the penalty date
• A third 5% penalty is charged on any amount still unpaid 11 months after the penalty date
• The penalties are cumulative, meaning a taxpayer who fails to pay for over 11 months could face total penalties of up to 15% of the unpaid tax