LBTT return: telling Revenue Scotland about a property purchase

Who needs it

• Buyers of residential or non-residential land and buildings in Scotland where the transaction is notifiable.
• Buyers of an additional dwelling, where the Additional Dwelling Supplement (ADS) is declared on the same return.
• Tenants taking on a notifiable lease, who file a lease return and, for some leases, later lease review returns.

What you need before you start

• Details of every buyer and seller, including names, addresses and dates of birth or company details.
• The property address, title number if known, and whether it's residential or non-residential.
• The effective date of the transaction and the price or other chargeable consideration.
• Whether ADS applies, and any reliefs you're claiming, such as first-time buyer relief.
• Payment for any tax due, sent at the same time as the return.

How to file LBTT return

1. 1Check whether the transaction is notifiable. Revenue Scotland's guidance LBTT4003 sets out the threshold and the exemptions.
2. 2If you have a solicitor or conveyancer, they complete the online return in SETS. You stay responsible for it being complete and accurate, so check the details they send you.
3. 3If you don't have a solicitor or conveyancer, email Revenue Scotland at lbtt@revenue.scot for the paper return and its guidance. There's no online service for taxpayers filing on their own.
4. 4Work through each part of the return: buyer, seller, property, ADS, transaction, conveyance, calculation, reliefs, then payment and submission.
5. 5Submit the return and pay any tax due within 30 days of the day after the effective date.

What makes a transaction notifiable

Revenue Scotland's guidance LBTT4003 says a land transaction is notifiable where the consideration is £40,000 or more. Linked transactions are tested on their combined total. Amounts that would be taxable but for a relief you claim still count towards the test.

Some transactions aren't notifiable, including those with no chargeable consideration, residential leases and licences, and transfers in connection with a divorce or the dissolution of a civil partnership. If you're unsure, check LBTT4003 before deciding no return is needed.

Who files it

The buyer must make the return and pay the tax (LBTT4004). In practice, the buyer's solicitor or conveyancer files it online through the Scottish Electronic Tax System (SETS), which is only for tax professionals and the organisations registered with it.

Buyers without a solicitor or conveyancer, for example in some family transfers or private sales, use a paper return. Revenue Scotland sends the right form and guidance on request to lbtt@revenue.scot.

Deadline and paying the tax

The return is due within 30 days of the day after the effective date, which Revenue Scotland calls the filing date (LBTT4004). Revenue Scotland's guidance LBTT1004 explains how the effective date is worked out; your solicitor will confirm it for your purchase.

Any tax due is paid at the same time as the return. Revenue Scotland's calculator, and Countify's LBTT calculator, show the likely figure before you commit.

If the return is late

Revenue Scotland charges a fixed £100 penalty when the return isn't received by the filing date, then daily and further penalties the longer it stays outstanding. Paying late brings separate late-payment penalties. The full table is in Revenue Scotland's guidance on penalties for submitting or paying late.

Amending a return and ADS repayments

Your agent can amend a submitted return in SETS. If you paid ADS and then sell your previous main residence within the allowed window, you can claim it back; see the ADS repayment claim guide for the routes and evidence.

Common mistakes

• Assuming no return is needed because no tax is due. A notifiable transaction needs a return whatever the tax.
• Leaving it to the solicitor without checking it. Revenue Scotland says the buyer remains legally responsible for the return being accurate and on time.
• Missing ADS. If you already own a dwelling anywhere in the world and aren't replacing your main residence, check whether ADS applies before the return is filed.
• Posting a cheque. Revenue Scotland no longer accepts paper forms and cheques by post from organisations and tax professionals.