March 31, 2015

UK Relocation: Scottish Land and Building Transaction Tax

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UK Relocation: Scottish Land and Building Transaction Tax

Scottish legislation, known as the Land and Buildings Transaction Tax (LBTT) Bill is set to be introduced on 1 April 2015. The new rules will replace the current system of Stamp Duty Land Tax (SDLT) in Scotland. Working with our preferred supplier, Adie Hunter Solicitors & Notaries, Glasgow, our latest Cartus Mobility Insights provides further information on the new rules and their potential impact on international and UK domestic relocation to Scotland.

The New Legislation

The main elements of the LBTT bill include changing from a ‘slab’ structure of taxation to a progressive tax structure, which is similar to the UK income tax system. Payment is required prior to registering a property’s title; this aims to encourage prompt tax payments and allows for a ‘one stop’ submission, payment and registration process.

Impact on Relocation

Commencing 1 April 2015, there will be an additional variation in property transaction costs between Scotland and the remainder of the UK. Given that several other cost elements related to property transactions already vary within the UK, this in itself is not a major change. However, unlike Stamp Duty Land Tax, there is no exemption from LBTT at the stage where an employer/relocation company ‘buy-in’ a relocating employee’s house under a guaranteed home sale programme and, as such, it is likely that the LBTT will be payable. Organisations should be mindful of this, as it may involve an additional cost when implementing home sale programmes in Scotland.

In terms of delivery, there will be no change to the manner in which Cartus currently provides home sale programmes to organisations and their relocating employees. For more details on these legislative changes, download the Mobility Insights or contact your Cartus representative at

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Posted By

Kate Miles

About Kate

Kate is Director of Legal Services and is based in the Cartus Swindon, UK office. She began working for the company in January 2004 and has over 20 years’ experience working for in-house legal departments.

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