This Land and Buildings Transaction Tax (LBTT) Calculator helps you estimate the tax you’ll need to pay when buying property in Scotland. LBTT is a key cost to consider, as it can significantly affect your total outlay when purchasing a home or investment property.
What Is LBTT?
LBTT is the Scottish equivalent of Stamp Duty, applied to residential and commercial property purchases. The amount you pay depends on the property price and your circumstances (first-time buyer, home mover, or buying a second property).
Why Is LBTT Important?
LBTT is a significant cost that can impact your overall budget when buying property in Scotland. Knowing how much you’ll owe in advance allows you to plan more effectively and avoid unexpected expenses at completion. Here’s why understanding LBTT matters:
- Budget accurately for your home purchase
- Avoid surprises at completion
- Compare costs between different property values or scenarios
- Plan for additional surcharges if buying a second home or buy-to-let
How This LBTT Calculator Works
Our calculator is designed to make it easy to estimate your LBTT bill, so you can see exactly what you’ll owe before you buy. This helps you compare different scenarios and make informed decisions about your property purchase. To use the calculator:
- Enter your property purchase price
- Select your buyer status (first-time, home mover, or second home)
- Instantly see your estimated LBTT due, broken down by tax band
You’ll also get a summary table showing how much tax is charged at each band.
When Do You Need to Pay LBTT in Scotland?
- LBTT is due on most property purchases over £145,000 (or £175,000 for first-time buyers).
- You must pay LBTT within 30 days of completion.
- Your solicitor usually handles the payment as part of the conveyancing process.
2025 LBTT Rates in Scotland
The amount of LBTT you’ll pay depends on your situation as a buyer. The following sections break down the rates for first-time buyers, home movers, and those purchasing additional properties. Each group has its own thresholds and tax bands, so be sure to check the table that matches your circumstances.
First-Time Buyers
If you’re buying your very first home in Scotland, you benefit from a higher 0% LBTT threshold. This means you pay no tax on the first £175,000 of your property’s value, making it easier to get on the property ladder. Here are the current rates for first-time buyers:
| Property Price | LBTT Tax Rate |
|---|---|
| Up to £175,000 | 0.00% |
| £175,001 – £250,000 | 2.00% |
| £250,001 – £325,000 | 5.00% |
| £325,001 – £750,000 | 10.00% |
| Over £750,000 | 12.00% |
Home Movers (Main Residence)
If you already own a home and are moving to another main residence, you’ll pay LBTT at the standard rates. The 0% threshold is lower than for first-time buyers, so you may pay tax on a greater portion of your property’s value. Here are the rates for home movers:
| Property Price | LBTT Tax Rate |
|---|---|
| Up to £145,000 | 0.00% |
| £145,001 – £250,000 | 2.00% |
| £250,001 – £325,000 | 5.00% |
| £325,001 – £750,000 | 10.00% |
| Over £750,000 | 12.00% |
Second Homes & Buy-to-Let
If you’re buying an additional property—such as a second home or a buy-to-let investment—you’ll pay higher LBTT rates. These rates reflect the Additional Dwelling Supplement (ADS), which is designed to discourage property speculation and increase housing availability for first-time buyers. Here’s what you’ll pay:
| Property Price | LBTT Tax Rate |
|---|---|
| More than £145,000 | 8.00% |
| More than £145,000 up to £250,000 | 10.00% |
| More than £250,000 up to £325,000 | 13.00% |
| More than £325,000 up to £750,000 | 18.00% |
| More than £750,000 | 20.00% |
Example: LBTT Calculation for a Home Mover
To see how LBTT is calculated in practice, let’s walk through an example for someone buying a main residence. The tax is worked out in bands, so each portion of the property price is taxed at a different rate. Here’s how it would look for a £300,000 home:
- First £145,000: 0% = £0
- Next £105,000 (£145,001–£250,000): 2% = £2,100
- Next £50,000 (£250,001–£300,000): 5% = £2,500
Total LBTT due: £4,600
Key Points to Remember
LBTT is just one of several costs you’ll face when buying property, but it’s often the largest after your deposit. Being aware of the rules and thresholds can help you avoid costly mistakes and make the most of any available reliefs. Keep these points in mind:
- LBTT is paid in “slices”—each portion of the price is taxed at its own rate.
- First-time buyers get a higher 0% threshold.
- Second homes and buy-to-let properties pay a higher rate due to the ADS.
- LBTT is separate from other costs like legal fees, surveys, and mortgage charges.
Frequently Asked Questions
Do I pay LBTT on new builds?
Yes, LBTT applies to both new builds and existing properties.
Can I claim back the ADS if I sell my main home?
Yes, if you sell your previous main residence within 18 months, you may be eligible for a refund.
Are there exemptions?
Some transactions (e.g., certain transfers between spouses) may be exempt. Check with your solicitor for details.
What happens if I don’t pay LBTT on time?
Penalties and interest may apply, so it’s important to pay promptly.