Scotland LBTT Calculator

Land and Buildings Transaction Tax (LBTT) replaced Stamp Duty Land Tax in Scotland from 1 April 2015. It is administered by Revenue Scotland rather than HMRC. LBTT has a higher nil-rate threshold of £145,000 compared to £125,000 in England, but the Additional Dwelling Supplement is 8% compared to 5% in England.

LBTT is charged at 0% on the first £145,000, 2% on £145,001 to £250,000, 5% on £250,001 to £325,000, 10% on £325,001 to £750,000, and 12% on any amount above £750,000. These are progressive rates, so you only pay the higher rate on the portion within each band.

The Additional Dwelling Supplement (ADS) is Scotland's equivalent of the additional property surcharge. It is charged at 8% of the full purchase price when you buy an additional residential property over £40,000. The ADS rate increased from 6% to 8% on 5 December 2024.

Scotland offers first-time buyer relief that raises the LBTT nil-rate threshold from £145,000 to £175,000, providing a maximum saving of £600. Unlike England where relief ceases entirely above £500,000, Scottish FTB relief applies to properties of any value but only on the first £175,000.

Yes, you can reclaim ADS if you sell your previous main residence within 36 months of buying the new property and the new property becomes your main home. Scotland extended the ADS repayment window from 18 months to 36 months for all transactions with an effective date on or after 1 April 2024, matching the England/NI window. Transactions before 1 April 2024 used the 18-month window.

You must submit an LBTT return and pay any tax due within 30 days of the effective date of the transaction (usually the completion date). Your solicitor normally handles this through Revenue Scotland's SETS portal. Late submission attracts a £100 penalty, with further penalties for continued delay.

Scotland's Additional Dwelling Supplement (ADS) is charged at 8% of the full purchase price, not band-by-band like England's 5% surcharge. On a £300,000 second home, Scotland charges £24,000 in ADS alone (8% of £300,000), while England charges £15,000 in surcharge (5% applied to each band). This makes Scotland significantly more expensive for additional property purchases.

The Scottish Government confirmed no changes to LBTT residential rates or bands for 2026-27 in the Scottish Budget. However, a broader review of LBTT is underway, with results expected before the end of the current parliamentary term. ADS rates and thresholds are under particular scrutiny.

First-time buyers purchasing at or below £175,000 pay no LBTT at all (£0). Above £175,000, FTBs pay LBTT on the portion above £175,000 at the standard rates (2% to £250,000, 5% to £325,000, etc.). There is no property price cap for the relief, unlike England where FTB relief is lost entirely above £500,000.