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LBTT is Scotland's property tax, replacing Stamp Duty Land Tax (SDLT) since April 2015. It's administered by Revenue Scotland and uses progressive bands — you only pay each rate on the slice of the purchase price within that band. Rates range from 0% on the first £145,000 to 12% above £750,000. First-time buyers get a nil rate up to £175,000.
Land and Buildings Transaction Tax (LBTT) is the tax paid on property purchases in Scotland. It replaced Stamp Duty Land Tax (SDLT) from 1 April 2015 when the Scottish Parliament gained power over land transaction taxes under the Scotland Act 2012.
How LBTT is calculated. LBTT uses a banded progressive system — you pay each rate only on the slice of the purchase price within that band. For a standard residential purchase in 2026/27: - 0% on the first £145,000 - 2% on £145,001–£250,000 - 5% on £250,001–£325,000 - 10% on £325,001–£750,000 - 12% above £750,000
Worked example. Buying a £300,000 property: 0% on £145,000 = £0; 2% on £105,000 (£145,001–£250,000) = £2,100; 5% on £50,000 (£250,001–£300,000) = £2,500. Total LBTT: £4,600.
First-time buyer relief. First-time buyers get an extended nil-rate band to £175,000 — meaning no LBTT on the first £175,000. This saves a maximum of £600 compared to a standard buyer (2% × £30,000 difference between £145k and £175k). Both buyers in a joint purchase must be first-time buyers; if either has previously owned property anywhere in the world, neither qualifies.
Additional Dwelling Supplement. An 8% surcharge (ADS) applies on top of standard LBTT for additional residential properties — buy-to-let, second homes, holiday lets. ADS is charged on the full purchase price, not just the excess. It can be reclaimed if a previous main residence is sold within 36 months (for purchases from 1 April 2024).
Scotland vs England comparison. LBTT is generally cheaper than SDLT at lower price points but comparable at higher ones. The nil-rate threshold is slightly higher in England currently (£125,000 standard vs Scotland's £145,000). For most standard purchases, Scotland is modestly cheaper below £500,000.
Who administers LBTT. Revenue Scotland handles all LBTT filings and payments. Your solicitor submits the LBTT return and pays the tax within 30 days of completion. Unlike SDLT in England, there is no self-filing option — the return must go through a solicitor or tax agent.
LBTT is paid within 30 days of the completion date (the date you take ownership of the property). Your solicitor handles the LBTT return and payment to Revenue Scotland as part of the conveyancing process. You won't need to file anything directly — but you'll see the LBTT amount as a line item in your solicitor's completion statement.
No — LBTT replaced Stamp Duty Land Tax (SDLT) in Scotland from April 2015. The rates, bands, and rules are all different. SDLT continues to apply in England and Northern Ireland. Wales has its own equivalent called Land Transaction Tax (LTT). The underlying mechanism (progressive banded taxation) is similar, but the specific numbers differ significantly — you cannot use an England SDLT calculator for a Scottish purchase.
Yes — LBTT applies to all residential property purchases in Scotland, new builds and second-hand alike. The same rates apply. First-time buyer relief is also available for new builds if you meet the eligibility criteria. Note that on some new-build developer purchases, the developer may offer to pay your LBTT as an incentive — this is legally permitted and you can accept it.