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LBTT Scotland 2026/27 — First-Time Buyer
First-time buyers in Scotland benefit from an extended nil-rate band to £175,000. At £325,000, that saves £600 compared to a standard buyer.
FTB LBTT
£5,250
Saving vs standard
£600
England SDLT
£6,250
if buying in England
Key threshold: This is the top of the 5% LBTT band. Prices above £325,000 attract 10% LBTT on the excess — a major band boundary. A property at £326,000 pays 10% on the £1,000 above £325k = £100 more LBTT vs the 5% rate.
The exact top of the 5% LBTT band. In Edinburgh, £325,000 buys a good two-bedroom flat in established suburbs or a smaller three-bedroom flat in areas like Leith and Portobello. In Glasgow's West End, it reaches quality two-bedroom flats. Most other Scottish cities offer substantial detached family homes at this price.
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% | £75,000 | £1,500 |
| £250,001 - £325,000 | 5% | £75,000 | £3,750 |
| £325,001 - £750,000 | 10% | — | — |
| Over £750,000 | 12% | — | — |
| Total FTB LBTT | £5,250 | ||
FTB saving: Standard LBTT on £325,000 would be £5,850. First-time buyers save £600.
FTB LBTT at £325,000 is £5,250 (2% on £75k + 5% on £75k). Both the 2% and 5% bands are fully consumed at this price — any additional price above £325,000 enters the 10% band. If you can negotiate to exactly £325,000 rather than £326,000, you save £10 in FTB LBTT on that £1,000 difference, rising significantly on larger excesses.
A Lifetime ISA can be used for this purchase — £325,000 is under the £450,000 LISA limit.
| LBTT (first-time buyer) | £5,250 |
| Legal / solicitor fees (estimate) | £1,500–£2,500 |
| Home Report (if applicable) | £600–£1,100 |
| Estimated total (excluding deposit) | £7,350–£8,850 |
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.
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 £325,000 property, a first-time buyer pays £5,250 — a saving of £600 compared to a standard buyer's £5,850.
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).
Yes. At £325,000, 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.
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.
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 £325,000:
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.