England SDLT vs Scotland LBTT Comparison
Side-by-side comparison of Stamp Duty Land Tax (England) and Land and Buildings Transaction Tax (Scotland) with rate bands, thresholds, and worked examples.
Quick Comparison
- England nil-rate: £125,000 | Scotland nil-rate: £145,000
- England FTB threshold: £300,000 | Scotland FTB: £175,000
- England surcharge: 5% | Scotland ADS: 8%
- Generally cheaper: Scotland below ~£325,000, England above
SDLT vs LBTT Overview
England and Northern Ireland use Stamp Duty Land Tax (SDLT), administered by HMRC, while Scotland has its own devolved system called Land and Buildings Transaction Tax (LBTT), administered by Revenue Scotland.
Both are progressive taxes with multiple rate bands, but Scotland's bands are structured differently, resulting in significant differences in tax liability depending on your property price.
Key Insight
Scotland's higher nil-rate band (£145,000) makes it cheaper for properties below £325,000, but England's lower rates above £325,000 make it cheaper for higher-value properties.
Standard Rate Bands Compared
The rate bands show significant structural differences between England and Scotland:
England SDLT Rates
| Band | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001–£250,000 | 2% |
| £250,001–£925,000 | 5% |
| £925,001–£1,500,000 | 10% |
| Over £1,500,000 | 12% |
Scotland LBTT Rates
| Band | Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001–£250,000 | 2% |
| £250,001–£325,000 | 5% |
| £325,001–£750,000 | 10% |
| Over £750,000 | 12% |
Critical Difference
Scotland's 10% band starts at £325,001 (vs £925,001 in England), making properties between £325,000 and £925,000 significantly more expensive in Scotland.
First-Time Buyer Relief Compared
Both regions offer first-time buyer relief, but with significantly different structures:
England FTB Relief
- 0% up to £300,000 (on properties up to £500,000)
- 5% from £300,001–£500,000
- Standard rates apply above £500,000
- Maximum saving: £2,500
Scotland FTB Relief
- 0% up to £175,000
- Standard LBTT rates apply above £175,000
- No maximum property value limit
- Maximum saving: £600
Example: A first-time buyer purchasing a £400,000 property pays:
- England: £5,000 (0% to £300k, 5% on £100k)
- Scotland: £11,750 (0% to £175k, then standard bands)
- England saves £6,750 at this price point
Verdict: England's FTB relief is significantly more generous for properties between £175,000 and £500,000, offering up to £2,500 in savings vs Scotland's £600 maximum.
Additional Property Surcharges
Both regions charge additional rates for second homes and buy-to-let properties, but Scotland's surcharge is significantly higher:
England Surcharge
5% added to each band (from April 2025)
The 5% surcharge is added on top of the standard SDLT rates for each portion of the purchase price.
Scotland ADS
8% on full purchase price (from Dec 2024)
Additional Dwelling Supplement (ADS) is a flat 8% charged on the entire property value.
Example: £300,000 second home
| Region | Standard Tax | Surcharge | Total |
|---|---|---|---|
| England | £5,000 | £7,500 | £12,500 |
| Scotland | £4,600 | £24,000 | £28,600 |
Scotland's ADS is significantly higher: At £300,000, Scotland's total tax with ADS is £28,600 vs England's £12,500—a difference of £16,100 (129% more expensive).
Worked Examples at Key Prices
The following table shows standard residential rates (not additional properties) at key price points:
| Property Price | England SDLT | Scotland LBTT | Cheaper Region |
|---|---|---|---|
| £150,000 | £500 | £100 | Scotland £400 cheaper |
| £200,000 | £1,500 | £1,100 | Scotland £400 cheaper |
| £250,000 | £2,500 | £2,100 | Scotland £400 cheaper |
| £300,000 | £5,000 | £4,600 | Scotland £400 cheaper |
| £400,000 | £10,000 | £13,350 | England £3,350 cheaper |
| £500,000 | £15,000 | £23,350 | England £8,350 cheaper |
Crossover point: Scotland is cheaper up to approximately £325,000, after which England becomes progressively cheaper due to the earlier 10% band in Scotland.
Which Region is Cheaper?
The answer depends on your property price and circumstances:
Scotland is Generally Cheaper:
- Properties up to £325,000 benefit from Scotland's higher nil-rate band (£145,000 vs £125,000)
- Low-value properties (under £200,000) see consistent savings of around £400
- First-time buyers purchasing under £175,000 save up to £600
England is Generally Cheaper:
- Properties above £325,000 benefit from England's higher 10% threshold (£925,001 vs £325,001)
- First-time buyers purchasing between £175,000–£500,000 save significantly with England's £300,000 threshold
- Additional properties are much cheaper due to England's 5% surcharge vs Scotland's 8% ADS
Use Our Calculators
Always calculate your specific liability using accurate calculators, as individual circumstances (e.g., first-time buyer status, additional properties) significantly impact the final amount.
Key Administrative Differences
Beyond the rates, there are important procedural differences:
| Aspect | England (SDLT) | Scotland (LBTT) |
|---|---|---|
| Administrator | HMRC | Revenue Scotland |
| Filing Deadline | 14 days from completion | 30 days from effective date |
| Return Form | SDLT1 | LBTT Return |
| Surcharge | 5% added to each band | 8% ADS on full price |
| Surcharge Refund Window | 3 years (if selling main home) | 18 months (if selling previous home) |
Important: Scotland's 30-day filing deadline (vs England's 14 days) provides more time, but missing either deadline results in automatic penalties.
Calculate Your Exact Liability
Use our specialized calculators to get accurate figures for your specific property and circumstances:
Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.