Rates read 22 October 2026 from Revenue Scotland
LBTT on a Lease (Scotland)
Scotland taxes the net present value of the rent on a lease: nothing to £150,000, 1% from there to £2 million, and 2% above it. Most residential leases fall below the threshold and pay nothing.
Work it out
Rent only. A premium paid for the lease is taxed separately.
The bands
| Portion of the price | Rate |
|---|---|
| £0 – £150,000 | 0% |
| £150,001 – £2,000,000 | 1% |
| Above £2,000,000 | 2% |
What the NPV is
The net present value is all the rent due over the term of the lease, discounted to its value on the effective date. Revenue Scotland publishes that calculation method and its own lease calculator; this page applies the rate table to an NPV you already have.
When a lease is notifiable
A lease is usually notifiable if the NPV of the rent is more than £150,000, or if a premium is paid. If the NPV is £150,000 or less and there is no premium, no lease return is needed — but if the lease later changes and becomes notifiable, a return is due at that point.
Premiums are charged separately
Any premium for the lease is taxed on the non-residential scale: 0% to £150,000, 1% to £250,000, 5% above. This calculator covers the rent only.
Source: Revenue Scotland — LBTT60053 tax rates and bands (lease transactions), read 22 October 2026. Scotland only, for lease transactions on or after 7 February 2020. Enter the net present value of the rent, not the annual rent.