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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 £500,000, that saves £600 compared to a standard buyer.
FTB LBTT
£22,750
Saving vs standard
£600
England SDLT
£15,000
if buying in England
£500,000 secures a substantial Edinburgh property — four-bedroom family homes in desirable suburbs, principal floors of Georgian townhouses, or large category B listed flats. In rural Scotland, it reaches quality Perthshire farmhouses and impressive Highland properties. The market at this level is thinner, with fewer comparable sales and more negotiation opportunity.
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% | £175,000 | £17,500 |
| Over £750,000 | 12% | — | — |
| Total FTB LBTT | £22,750 | ||
FTB saving: Standard LBTT on £500,000 would be £23,350. First-time buyers save £600.
FTB LBTT at £500,000 is £23,750. At this price, LISA is unavailable (above £450k) and the deposit typically comes from savings, equity-sharing with family, or a high-income mortgage. Edinburgh's competitive market means some first-time buyers at this level have been renting premium property for years before purchasing — the HMRC FTB declaration covers worldwide property ownership history.
A Lifetime ISA cannot be used for this purchase — £500,000 exceeds the £450,000 LISA property limit.
If you have a LISA, you can keep it open and use it for retirement savings from age 60, or close it with a 25% withdrawal penalty. At £500,000, alternative savings vehicles such as a Help to Buy: ISA (if still open) or standard cash/stocks & shares ISAs may be more appropriate.
| LBTT (first-time buyer) | £22,750 |
| Legal / solicitor fees (estimate) | £1,500–£2,500 |
| Home Report (if applicable) | £600–£1,100 |
| Estimated total (excluding deposit) | £24,850–£26,350 |
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 £500,000 property, a first-time buyer pays £22,750 — a saving of £600 compared to a standard buyer's £23,350.
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).
No. At £500,000, a Lifetime ISA cannot be used — the purchase price exceeds the £450,000 LISA property limit. The LISA can be used toward retirement instead, or withdrawn with a 25% penalty if needed early.
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 £500,000:
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.