Jurisdiction(s):
United Kingdom

Key definition

Transaction definition

What does Transaction mean? A transaction describes a legally binding dealing or arrangement by which assets, securities, services or obligations are created, transferred, varied or extinguished, whether as a single step or a series of steps. In practice this includes corporate acquisitions and disposals, real estate conveyancing, lending and taking security, restructurings, derivatives and other commercial dealings. In capital markets, a transaction commonly means the purchase, sale, subscription or underwriting of a particular investment. The term is a descriptive umbrella used across multiple legal contexts rather than a term with a single statutory meaning. Specific legislation, regulatory rules and contracts may define “transaction”...

Scotland: LBTT chargeable consideration, rates, ADS and MDR, leases, linked transactions, case law and SDLT comparisons

Published by a LexisNexis Tax expert

Practice notes

FORTHCOMING CHANGE :

The Scottish government has started a review of LBTT that began in spring 2025. Areas under particular scrutiny include:

using non‑residential rates for ‘mixed’ Transactions
multiple dwellings relief
the 6+ exemption from the additional dwellings supplement
first time buyer relief
the three‑yearly lease review returns
whether LBTT rates can be aligned with net zero objectives

No alterations are expected until after the Scottish Parliament elections (which must take place by 7 May 2026).

How is LBTT calculated?

The land and buildings transaction tax (LBTT) due on a land transaction is worked out by applying the relevant tax rate or rates (including a nil rate) to the chargeable consideration. Where transactions that appear separate are linked under the legislation, the LBTT must be computed as if there were a single transaction. Revenue Scotland provides online tools to calculate the LBTT due—see the Revenue Scotland property transactions calculator and the lease transactions calculator. This Practice Note sets out the meaning of chargeable consideration and linked transactions and summarises the applicable LBTT rates and bands and, where relevant, comparisons between LBTT and stamp duty land...

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Nicola Williams

Burness Paull

Nicola Williams is a partner in the Corporate Tax and Share Incentives team at Burness Paull LLP. She advises on tax aspects on a wide range of corporate transactions, real estate transactions and the design and implementation of share plans. Nicola is co-convener of the Law Society of Scotland’s Tax Committee and regularly contributes to HMRC and Revenue Scotland consultations on proposed tax changes. ...

Web page updated on 21/05/2026

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