What Is LBTT?
Land and Buildings Transaction Tax (LBTT) is the property purchase tax in Scotland. It replaced Stamp Duty Land Tax (SDLT) on 1 April 2015 and is administered by Revenue Scotland. Like SDLT in England and Northern Ireland, LBTT is a progressive tax — you pay each rate only on the portion of the purchase price within each band.
If you are buying property in England or Northern Ireland, use our Stamp Duty calculator instead. For Wales, use the Land Transaction Tax calculator.
Current LBTT Rates for 2025/26
Standard Residential Rates
| Purchase Price Band | LBTT Rate |
|---|---|
| Up to £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 Rates
First-time buyers benefit from an increased nil-rate band:
| Purchase Price Band | LBTT Rate |
|---|---|
| Up to £175,000 | 0% |
| £175,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| Over £750,000 | 12% |
The first-time buyer relief raises the nil-rate threshold from £145,000 to £175,000, saving up to £600.
Additional Dwelling Supplement (ADS)
If you are purchasing an additional residential property in Scotland — such as a second home or a buy-to-let — the Additional Dwelling Supplement of 8% is charged on the entire purchase price for properties costing £40,000 or more. This is on top of the standard LBTT rates.
How LBTT Is Calculated
LBTT works on a progressive slice system, identical in principle to income tax. Each rate applies only to the portion of the price within that band.
Example: Buying a £300,000 Home in Scotland (Standard Rates)
| Band | Amount in Band | Rate | LBTT Due |
|---|---|---|---|
| £0 – £145,000 | £145,000 | 0% | £0 |
| £145,001 – £250,000 | £105,000 | 2% | £2,100 |
| £250,001 – £300,000 | £50,000 | 5% | £2,500 |
| Total | £4,600 |
Example: First-Time Buyer at £300,000 in Scotland
| Band | Amount in Band | Rate | LBTT Due |
|---|---|---|---|
| £0 – £175,000 | £175,000 | 0% | £0 |
| £175,001 – £250,000 | £75,000 | 2% | £1,500 |
| £250,001 – £300,000 | £50,000 | 5% | £2,500 |
| Total | £4,000 |
A first-time buyer saves £600 compared to the standard calculation.
Example: Additional Property at £300,000 in Scotland
For a buy-to-let purchase, the 8% ADS is added to the total price:
- Standard LBTT: £4,600
- ADS (8% × £300,000): £24,000
- Total LBTT due: £28,600
The ADS represents a significant additional cost for buy-to-let investors and second-home buyers in Scotland.
How LBTT Differs from SDLT
While both taxes use a progressive band structure, there are important differences:
- Different thresholds and rates — LBTT bands are set by the Scottish Government and differ from SDLT bands.
- Higher ADS rate — Scotland’s 8% Additional Dwelling Supplement is higher than the 5% surcharge for additional properties under SDLT in England.
- Administered by Revenue Scotland — not HMRC. LBTT returns must be submitted and tax paid to Revenue Scotland within 30 days of completion.
- First-time buyer relief differs — the nil-rate threshold and savings amounts are different from those in England and Northern Ireland.
Paying LBTT
Your solicitor will normally submit the LBTT return and arrange payment to Revenue Scotland on your behalf. The LBTT return must be filed, and the tax paid, within 30 days of the effective date of the transaction (usually the completion date). Late filing or payment can result in penalties and interest.
If you are planning a property purchase in Scotland, factor LBTT into your overall budget alongside your deposit, legal fees, and other upfront costs. Our mortgage calculator can help you work out your monthly repayments, while our mortgage deposit calculator helps you plan the full cost of buying.
Frequently Asked Questions
Answers to common LBTT questions are provided in the FAQ section above. For the latest rates and guidance, consult the official Revenue Scotland website.