Land and Buildings Transaction Tax (LBTT)
LBTT is the property tax paid when buying a home in Scotland. It's calculated using rate bands, so you only pay the rate on the portion of the price that falls within each band.
Who pays LBTT?
The buyer pays LBTT when the price is above the nil-rate threshold. Additional properties may also pay the Additional Dwelling Supplement (ADS).
Key thresholds (summary)
- Standard rates start above £145,000
- First-time buyer relief increases the nil-rate threshold
- ADS applies to additional properties
Current LBTT rates (Scotland)
Standard rates
| Purchase price | Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,000 – £250,000 | 2% |
| £250,000 – £325,000 | 5% |
| £325,000 – £750,000 | 10% |
| Above £750,000 | 12% |
First-time buyer rates (nil-rate threshold raised to £175,000)
| Purchase price | Rate |
|---|---|
| Up to £175,000 | 0% |
| £175,000 – £250,000 | 2% |
| £250,000 – £325,000 | 5% |
| £325,000 – £750,000 | 10% |
| Above £750,000 | 12% |
Additional Dwelling Supplement (ADS): 8% on the full purchase price (from 5 Dec 2024).
Worked example
Standard buyer purchasing at £250,000 in Scotland
- £145,000 × 0% = £0
- £105,000 × 2% = £2,100
- Total LBTT = £2,100
What this calculator does not cover
This calculator focuses on residential purchases only and does not include mixed-use, leases, or complex reliefs.
Frequently asked questions
- What is Land and Buildings Transaction Tax (LBTT)?
- LBTT is the property tax paid when buying residential or commercial property in Scotland. It replaced Stamp Duty in Scotland in 2015.
- How is LBTT calculated?
- LBTT is calculated in bands, so you only pay the rate on the portion of the property price that falls within each band.
- What is the Additional Dwelling Supplement (ADS)?
- ADS is a flat extra charge of 8% on the full purchase price for additional residential properties in Scotland, such as buy-to-let or second homes.
- What is first-time buyer relief in Scotland?
- Eligible first-time buyers in Scotland pay no LBTT on the first £175,000 of the purchase price, with standard rates applying above that.
- What are the differences between LBTT and SDLT?
- LBTT applies to property purchases in Scotland, whereas SDLT applies in England and Northern Ireland. The tax bands, rates, and reliefs differ between the two regimes.