Property Land Tax Rates – Different rules for different locations

Property Land Tax Rates

Following the devolution of certain taxes to government of Scotland and Wales, businesses need to be aware that certain property land tax rates are different in Scotland and Wales to England, notably what used to be called Stamp Duty.

Property Land Tax in England and Northern Ireland is now known as Stamp Duty Land Tax (SDLT). In Wales it is Land Transaction Tax (LTT) and in Scotland it is Land and Buildings Transactions Tax (LBTT). Although broadly similar, the three different Land Taxes have different rates in each location (see tables below).

With all three taxes, HMRC must receive a filed return within 30 days of the ‘effective’ date of the transaction, even if no tax is due. This is usually the date the transfer is completed. The payment deadline is the same as the return filing deadline.

However, the deadline for filing a return in England (Stamp Duty Land Tax) is changing from April 2019 from 30 to 15 days.

England and Northern Ireland – SDLT

Scotland – LBTT

There are specific circumstances in which Scotland requires a submitted tax return every three years for leases signed after April 2015, including:

  • Every three years from the effective date of the lease,
  • On assignation; and
  • On termination.

Wales – LTT

In summary, businesses purchasing new property need to take into consideration the different tax rates across jurisdictions and filing requirements. This is to ensure that the tax costs and payment dates do not come as an unwelcome surprise.

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To discuss further, please contact our Tax specialists on 0191 285 0321.

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