What is LBTT in Scotland?

Land and Buildings Transaction Tax is Scotland's version of stamp duty. It applies when buying property in Scotland. Rates and bands differ from English stamp duty. First-time buyers get relief up to £175,000.

Is LBTT cheaper than stamp duty?

Varies by price. Under £225,000: LBTT is lower (or zero). £250,000-400,000: Often similar. Over £400,000: LBTT can be higher due to higher top rates. First-time buyer relief also differs between the two systems.

Do first-time buyers pay LBTT Scotland?

First-time buyers in Scotland get relief up to £175,000 (paid threshold), meaning no LBTT on properties £175,000 and under. Above that, LBTT applies on portion over £175,000. Standard threshold is £145,000.

What is the LBTT rate for second homes Scotland?

Additional Dwelling Supplement (ADS) of 6% applies on top of standard LBTT for second homes, buy-to-let, and companies buying residential property. This is higher than England's 5% surcharge for additional properties.

LBTT vs Stamp Duty — Scottish Property Tax Guide | PocketWise

Scotland has its own property transaction tax — Land and Buildings Transaction Tax (LBTT).

LBTT Basics

What It Is

Feature	Details
Full name	Land and Buildings Transaction Tax
Replaced	Stamp Duty in Scotland (2015)
Applies in	Scotland only
Set by	Scottish Parliament
Collected by	Revenue Scotland

How It Differs from Stamp Duty

Feature	LBTT (Scotland)	SDLT (England)
Threshold	£145,000	£250,000
FTB threshold	£175,000	£425,000
Top rate	12%	12%
Additional property	+6%	+5%
Calculation	Progressive	Progressive

LBTT Rates 2025

Residential Property (Standard)

Purchase Price	LBTT Rate
£0-145,000	0%
£145,001-250,000	2%
£250,001-325,000	5%
£325,001-750,000	10%
Over £750,000	12%

First-Time Buyer Relief

Purchase Price	LBTT Rate
£0-175,000	0%
£175,001-250,000	2%
£250,001-325,000	5%
£325,001-750,000	10%
Over £750,000	12%

Additional Dwelling Supplement (ADS)

Situation	Additional Rate
Second home	+6%
Buy-to-let	+6%
Company purchase	+6%
Added to	Entire purchase price

LBTT Calculations

Standard Purchase Examples

Property Price	LBTT Due	Calculation
£150,000	£100	2% on £5,000
£200,000	£1,100	2% on £55,000
£250,000	£2,100	2% on £105,000
£300,000	£4,600	£2,100 + 5% on £50,000
£350,000	£7,100	£4,600 + 10% on £25,000
£400,000	£12,100	£7,100 + 10% on £50,000
£500,000	£22,100	Above + 10% on further £100,000

First-Time Buyer Examples

Property Price	LBTT Due	Saving vs Standard
£150,000	£0	£100
£175,000	£0	£600
£200,000	£500	£600
£250,000	£1,500	£600
£300,000	£4,000	£600
£350,000	£6,500	£600

Additional Property Examples

Property Price	Standard	+6% ADS	Total
£150,000	£100	£9,000	£9,100
£200,000	£1,100	£12,000	£13,100
£250,000	£2,100	£15,000	£17,100
£300,000	£4,600	£18,000	£22,600
£400,000	£12,100	£24,000	£36,100

LBTT vs Stamp Duty Comparison

Standard Rates Comparison

Property Price	LBTT	SDLT	Difference
£150,000	£100	£0	SDLT cheaper
£200,000	£1,100	£0	SDLT cheaper
£250,000	£2,100	£0	SDLT cheaper
£300,000	£4,600	£2,500	SDLT cheaper
£400,000	£12,100	£7,500	SDLT cheaper
£500,000	£22,100	£12,500	SDLT cheaper
£750,000	£47,100	£31,250	SDLT cheaper

First-Time Buyer Comparison

Property Price	LBTT (FTB)	SDLT (FTB)	Difference
£175,000	£0	£0	Same
£200,000	£500	£0	SDLT cheaper
£250,000	£1,500	£0	SDLT cheaper
£300,000	£4,000	£0	SDLT cheaper
£400,000	£11,500	£0	SDLT cheaper
£425,000	£14,000	£0	SDLT cheaper
£500,000	£21,500	£3,750	SDLT cheaper

Additional Property Comparison

Property Price	LBTT (+6%)	SDLT (+5%)	Difference
£200,000	£13,100	£11,500	SDLT cheaper
£300,000	£22,600	£17,500	SDLT cheaper
£400,000	£36,100	£27,500	SDLT cheaper
£500,000	£52,100	£42,500	SDLT cheaper

First-Time Buyer Relief

Eligibility

Requirement	Details
Not owned before	Any property, anywhere
Property is home	Not buy-to-let
In Scotland	Property located there
After June 2018	When relief started

Joint Purchases

Situation	Relief?
Both FTBs	Yes - full relief
One FTB, one not	No relief
All must qualify	For relief to apply

Relief Amount

Property Price	Standard LBTT	FTB LBTT	Saving
Up to £175,000	Varies	£0	Up to £600
Up to £250,000	£2,100	£1,500	£600
Any price			Max £600

Additional Dwelling Supplement

When ADS Applies

Situation	ADS?
Buying second home	Yes
Buy-to-let purchase	Yes
Keeping previous home	Yes
Company buying residential	Yes
Replacing main home (sold)	No
Selling within 18 months	Refund possible

Selling Previous Home

Timing	ADS Position
Sold before buying	No ADS
Buying before selling	ADS applies
Sell within 18 months	Claim refund
Takes longer than 18 months	ADS not refunded

ADS Refund

To Get Refund	Details
Sell previous home	Within 18 months
Previous was main home	Not investment
Claim within	12 months of sale
Apply to	Revenue Scotland

Non-Residential LBTT

Commercial Property Rates

Purchase Price	Rate
£0-150,000	0%
£150,001-250,000	1%
Over £250,000	5%

Mixed Use

Property Type	Rates
Part residential, part commercial	Non-residential rates
Can be beneficial	For mixed-use purchases

How to Pay LBTT

Payment Process

Step	Details
Solicitor calculates	As part of purchase
Paid at completion	Usually by solicitor
Revenue Scotland	Receives payment
Within 30 days	Of completion

Late Payment

Consequence	Amount
Filing late	£100 penalty
3 months late	Additional £200
6 months late	Further penalty
Interest	On unpaid tax

Planning Considerations

Timing Moves

Strategy	Benefit
Sell before buying	Avoid ADS
Complete sale first	Same day possible
18-month safety	If can’t sell first

First-Time Buyer Strategy

Consider	Impact
Buy on own first	Both get FTB relief separately
Then buy together	Neither gets relief
Depends on	Property values and plans

Summary

LBTT Key Points

Feature	Scotland
Nil rate threshold	£145,000
FTB threshold	£175,000
ADS rate	6%
Compared to SDLT	Generally higher
Exception	Under £145,000 (lower)

Quick Reference

Buying	Check
Main home	Standard rates
First home	FTB relief
Second home	+6% ADS
Replacing home	Sell first or claim refund

Calculator

Tool	Details
Revenue Scotland	Official calculator
Use for	Accurate figures
Include ADS	If applicable
Before buying	Know exact amount