LBTT: Land and Buildings Transaction Tax
Land and Buildings Transaction Tax (LBTT) is Scotland's property transaction tax, administered by Revenue Scotland. It replaced Stamp Duty Land Tax in Scotland from 1 April 2015 with different rates and thresholds.
Last verified: April 2026 | Source: Revenue Scotland
Key Takeaways
- •LBTT applies in Scotland only, from 1 April 2015. England and Wales have separate systems.
- •Administered by Revenue Scotland, not HMRC.
- •Standard nil-rate threshold: £145,000. First-time buyer nil-rate: £175,000.
- •The Additional Dwelling Supplement (ADS) — currently 8% — applies to additional residential properties.
- •LBTT uses different rate bands than SDLT, with rates up to 12% on the highest portions.
In this article
Definition
Land and Buildings Transaction Tax (LBTT) is the Scottish Government's property and land transaction tax, introduced under the Land and Buildings Transaction Tax (Scotland) Act 2013. It has applied in Scotland since 1 April 2015.
Revenue Scotland — Scotland's tax authority — administers LBTT. It replaced Stamp Duty Land Tax (SDLT) in Scotland and operates with different rate bands, thresholds, and rules.
When LBTT Applies
LBTT applies to property and land transactions in Scotland. It is triggered when you buy:
- •A freehold (ownership) property in Scotland
- •A new or existing leasehold
- •Land or property transferred in exchange for any payment
Residential Rates
| Property value | LBTT rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Above £750,000 | 12% |
First-Time Buyer Relief
First-time buyers in Scotland benefit from a higher nil-rate threshold of £175,000 (compared to £145,000 for standard buyers). Standard LBTT rates then apply above £175,000.
Additional Dwelling Supplement (ADS)
The Additional Dwelling Supplement (ADS) is an 8% surcharge added on top of standard LBTT rates when buying an additional residential property in Scotland. It is Scotland's equivalent of England's higher rates surcharge.
ADS applies to purchases of £40,000 or more. The rate was increased from 6% to 8% in December 2024. A refund is available if you sell your previous main home within 18 months of the purchase.
How to File and Pay
LBTT returns are filed with Revenue Scotland. The deadline is within 30 days of the effective date (usually completion). A return must be filed even if no tax is due.
Solicitors and conveyancers usually file on behalf of buyers and add the cost to their fees.
LBTT vs SDLT: Key Differences
| Feature | LBTT (Scotland) | SDLT (England) |
|---|---|---|
| Administered by | Revenue Scotland | HMRC |
| Nil-rate threshold | £145,000 | £125,000 |
| FTB nil-rate | £175,000 | £300,000 |
| Additional property surcharge | ADS: 8% | Higher rates: starts 5% |
| Filing deadline | 30 days | 14 days |
Official Government Source
For official LBTT guidance, rates, and filing information, see Revenue Scotland:
Land and Buildings Transaction Tax — Revenue ScotlandFrequently Asked Questions
What is LBTT?
LBTT (Land and Buildings Transaction Tax) is Scotland's property transaction tax, administered by Revenue Scotland. It replaced SDLT in Scotland from 1 April 2015 and has different rates and thresholds.
What are the current LBTT residential rates?
Current LBTT rates: 0% up to £145,000; 2% on £145,001 to £250,000; 5% on £250,001 to £325,000; 10% on £325,001 to £750,000; 12% above £750,000. First-time buyers get a nil-rate up to £175,000.
Does LBTT have an equivalent of the higher rates surcharge?
Yes. Scotland has the Additional Dwelling Supplement (ADS), currently 8% on top of standard LBTT rates for additional residential property purchases of £40,000 or more.
In this article
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 Calculate My Stamp Duty UK to help buyers understand the complex world of property transaction taxes.