Property Tax Update: The LBTT Additional Dwelling Supplement
The below email was sent to residential property, commercial property, personal tax and corporate tax solicitors today, 1 April 2016:
Following Royal Assent, and the publication of the Land and Buildings Transaction Tax (Amendment) (Scotland) Act 2016, the Additional Dwelling Supplement comes into effect for certain land transactions in Scotland from today, Friday 1 April.
We strongly encourage you to review the updated Revenue Scotland materials:
- the Tax Calculator has now been updated to provide for Additional Dwelling Supplement calculations
- a pdf version of the guidance on the legislation was published a few weeks ago
- the ‘How To’ Guidance was updated yesterday to provide instructions for those completing an LBTT return where the Additional Dwelling Supplement applies.
There remains an option to submit a paper return. From Friday 1 April, where a paper return is being made, it is essential that the new version of the paper return is used.
We have had queries from members about whether they are required to carry out additional checks, over and above the questioning clients about their circumstances. LBTT is a self-assessment tax. It is up to buyers to honestly declare their liability. Provided the client has given you the relevant information, you would not be expected to carry out additional checks.
If you have further questions, please contact the Society’s Professional Practice team.
Law Society of Scotland
This email was sent to Law Society members who have registered their area of work as residential property, commercial property, personal tax and/or corporate tax. To update your areas of work, login to the member’s area of the website.