LBTT Scotland 2026/27 — First-Time Buyer

LBTT for First-Time Buyers on a £180,000 Property

First-time buyers in Scotland benefit from an extended nil-rate band to £175,000. At £180,000, that saves £600 compared to a standard buyer.

FTB LBTT

£100

Saving vs standard

£600

England SDLT

£1,100

if buying in England

What £180,000 buys in Scotland

Just above the FTB nil-rate band, £180,000 reaches two-bedroom flats in Dundee city centre, Aberdeen suburbs like Bridge of Don, and residential areas of Stirling and Perth. The LIFT scheme may still apply in some areas at this price depending on local price ceilings.

First-time buyer LBTT breakdown

The first-time buyer relief extends the nil-rate band from £145,000 to £175,000. Tax is still calculated on slices — the 2% rate only applies to the portion above £175,000.

Band	Rate	Taxable	Tax
Up to £175,000	0%	£175,000	—
£175,001 - £250,000	2%	£5,000	£100
£250,001 - £325,000	5%	—	—
£325,001 - £750,000	10%	—	—
Over £750,000	12%	—	—
Total FTB LBTT			£100

FTB saving: Standard LBTT on £180,000 would be £700. First-time buyers save £600.

Strategic context for first-time buyers at £180,000

First-time buyers now pay LBTT — just £100 (2% on the £5,000 above £175,000). This is the first rung above the nil-rate threshold for FTBs. For buyers where the price can be negotiated to £175,000 or below, a saving of £100 is modest but LBTT at this level is negligible regardless.

Eligibility for first-time buyer LBTT relief

You must never have owned a residential property anywhere in the world — including inherited property, gifted property, or property owned abroad.
For joint purchases, both buyers must qualify as first-time buyers. If either buyer has previously owned a home, the relief is lost entirely.
Your solicitor claims the relief automatically on the LBTT return — there is no separate application.
The property must be purchased as your main residence — buy-to-let purchases do not qualify for FTB relief.
The relief applies to new builds and second-hand homes alike, as long as you meet the ownership criteria.

Lifetime ISA (LISA) compatibility

A Lifetime ISA can be used for this purchase — £180,000 is under the £450,000 LISA limit.

Save up to £4,000/year in a LISA and the government adds a 25% bonus (up to £1,000/year).
At an average of £1,000/year bonus, saving for 4 years can add £4,000 tax-free toward your deposit.
The LISA must have been open for at least 12 months before exchange of contracts.
You must be aged 18–39 to open a LISA; you can contribute until age 50.
Withdrawing for any other reason incurs a 25% penalty (effectively losing your bonus plus some of your own savings).

Scotland LIFT shared equity scheme

At £180,000, you may qualify for Scotland's LIFT (Low-cost Initiative for First Time Buyers) shared equity scheme. LIFT allows qualifying buyers to purchase a property while the Scottish Government takes a shared equity stake of up to 40% of the purchase price.

You only need a mortgage for your own share of the property (typically 60–90%).
The government's equity stake is repaid when you sell or buy out the share.
Income limits apply — typically under £36,000/year for a single buyer or £46,000 for a couple.
Check eligibility via mygov.scot/lift-scheme or speak to a Help to Buy agent.

Estimated total upfront costs on £180,000

LBTT (first-time buyer)	£100
Legal / solicitor fees (estimate)	£1,500–£2,500
Home Report (if applicable)	£500–£900
Estimated total (excluding deposit)	£2,100–£3,500

Legal fees and Home Report costs are estimates. Your solicitor will provide a precise quote. In Scotland, the seller usually provides the Home Report — you may only need to pay for an additional survey. Budget for searches, registration dues, and mortgage arrangement fees on top.

Frequently asked questions

Do first-time buyers pay LBTT in Scotland?

Yes, but at a reduced rate. First-time buyers benefit from an extended nil-rate band to £175,000 instead of the standard £145,000. On a £180,000 property, a first-time buyer pays £100 — a saving of £600 compared to a standard buyer's £700.

What is the first-time buyer nil-rate band for LBTT?

The first-time buyer nil-rate band for LBTT is £175,000 (2026/27). Standard buyers pay 0% on the first £145,000 only. The extended nil-rate band is a slice relief — only the portion up to £175,000 is tax-free, with 2% applying from £175,001 upwards. The maximum saving compared to a standard purchase is £600 (2% × £30,000 difference between £145k and £175k).

Can I use a Lifetime ISA to buy a house in Scotland?

Yes. At £180,000, you can use a Lifetime ISA (LISA) — the purchase price is under the £450,000 limit. You can save up to £4,000/year in a LISA and the government adds a 25% bonus (up to £1,000/year). The bonus must be claimed via the LISA provider on completion. You must be a first-time buyer and the LISA must have been open for at least 12 months.

What if one buyer has owned a property before?

If you're buying jointly and one buyer has previously owned a residential property — anywhere in the world — neither buyer qualifies for first-time buyer LBTT relief. Both buyers must be first-time buyers for the relief to apply. Your solicitor will confirm eligibility and make the declaration on your behalf on the LBTT return.

Try the full LBTT calculator

Enter any price and buyer type for a full band-by-band breakdown, ADS scenarios, and Scotland vs England comparison.

Open LBTT Calculator →

Other buyer types at £180,000:

Standard buyer (£700)Buy-to-let (£15,100)

← Lower price

£175k FTB

Higher price →

£200k FTB

View all LBTT price points →

Figures are estimates based on 2026/27 LBTT rates. Legal fees, searches, Home Report, and mortgage arrangement fees are not included. Always confirm the final LBTT liability with your solicitor before exchanging missives.