LBTT Explained: Scotland's Property Tax for Buyers
By PINEAPPLE NEST · Published · Updated
What is LBTT?
Land and Buildings Transaction Tax (LBTT) is the tax you pay when you buy a property in Scotland. It replaced UK Stamp Duty Land Tax in 2015 and is administered by Revenue Scotland.
How much will you pay?
LBTT is calculated on a progressive band system — you only pay the higher rate on the portion of the price within each band:
- Up to £145,000 — 0%
- £145,001 to £250,000 — 2%
- £250,001 to £325,000 — 5%
- £325,001 to £750,000 — 10%
- Over £750,000 — 12%
First-time buyer relief
If you're a first-time buyer, you get an increased nil-rate band of £175,000 instead of £145,000. This means you could save up to £600 on a property purchase.
Additional Dwelling Supplement (ADS)
Buying a second home or buy-to-let? You'll pay an extra 6% on top of the standard LBTT rates on the total purchase price. This is the Additional Dwelling Supplement.
When do you pay?
LBTT must be paid within 30 days of the effective date of the transaction (usually the date of settlement). Your solicitor will handle this for you.
Calculate your LBTT
Use our free LBTT Calculator to work out exactly how much tax you'll pay on your property purchase.