Revenue Scotland and LBTT: The Official Scottish Stamp Duty Authority Explained
Scotland replaced UK stamp duty with its own property tax in 2015. This guide explains who Revenue Scotland is, how Land and Buildings Transaction Tax (LBTT) works, and what rates apply to residential, additional, and commercial property transactions in Scotland.
In this article
What Is Revenue Scotland?
Revenue Scotland is the non-ministerial Scottish Government department responsible for collecting and managing devolved taxes in Scotland. It was established under the Revenue Scotland and Tax Powers Act 2014 and began operating on 1 April 2015 when Scottish tax devolution came into effect.
Revenue Scotland is distinct from HMRC. Where HMRC administers taxes across the whole UK, including Stamp Duty Land Tax (SDLT) in England and Northern Ireland, Revenue Scotland operates solely within Scotland. The two bodies operate under separate legislation and do not share returns, filing systems, or staff.
The 2015 devolution transition
From 1 April 2015, Land and Buildings Transaction Tax replaced UK SDLT for all land and property transactions with an effective date on or after that date in Scotland. Contracts signed before 1 April 2015 that completed on or after that date fell under LBTT. SDLT no longer applies to Scottish transactions.
The Scottish Parliament sets LBTT policy and rates. Revenue Scotland administers and collects the tax, handles returns, issues guidance, and manages compliance. This split between policy-maker and administrator mirrors the relationship between HM Treasury and HMRC in England.
As well as LBTT, Revenue Scotland collects the Scottish Landfill Tax. The primary source for LBTT guidance is revenue.scot/taxes/land-buildings-transaction-tax (last verified 2026-04-14).
LBTT vs SDLT: Key Differences
LBTT and SDLT share the same progressive structure: tax applies only to the portion of the price within each band, just like income tax. However, the two taxes differ in several important practical ways.
| Feature | LBTT (Scotland) | SDLT (England/NI) |
|---|---|---|
| Administering body | Revenue Scotland | HMRC |
| Nil rate threshold (standard) | £145,000 | £125,000 |
| First-time buyer nil rate | £175,000 | £300,000 |
| Additional property surcharge | ADS: 8% flat on full price | +5% on standard bands |
| Filing deadline | 30 days | 14 days |
| Online system | SETS (Scottish Electronic Tax System) | HMRC Stamp Taxes Online |
| Return threshold | Over £40,000 (even if no tax due) | No return below nil-rate threshold if no tax due |
The 30-day filing deadline for LBTT gives Scottish buyers more time to file than the 14-day window in England. However, the requirement to file a return for any purchase over £40,000 is broader than SDLT: in Scotland you must submit a return even when the price falls below the nil-rate threshold.
Residential LBTT Rates
The current residential rates have applied from 1 April 2021. Each rate applies only to the portion of the purchase price that falls within that band.
| Purchase price band | 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% |
Worked examples from Revenue Scotland
The following examples come directly from the Revenue Scotland guidance at revenue.scot.
| Purchase price | Calculation | LBTT due |
|---|---|---|
| £135,000 | Entire price below £145,000 nil rate | £0 |
| £235,000 | 0% on £145,000 = £0 2% on £90,000 = £1,800 | £1,800 |
| £875,000 | 0% on £145,000 = £0 2% on £105,000 = £2,100 5% on £75,000 = £3,750 10% on £425,000 = £42,500 12% on £125,000 = £15,000 | £63,350 |
Use our Scotland LBTT calculator to get an instant result for any purchase price, including the Additional Dwelling Supplement where applicable.
First-Time Buyer Relief
First-time buyers in Scotland benefit from a higher nil-rate band for LBTT. Instead of the standard £145,000 threshold, the nil rate applies up to £175,000. This produces a maximum saving of £600 compared to the standard rates.
First-Time Buyer Relief at a Glance
- •Nil rate threshold raised from £145,000 to £175,000
- •Maximum saving of £600 (2% on the additional £30,000)
- •Available only to buyers who have never owned a residential property anywhere in the world
- •Where there are joint buyers, all buyers must be first-time buyers
The Scottish first-time buyer relief is more modest than the equivalent in England, where first-time buyers pay no SDLT up to £300,000. Wales has no first-time buyer relief at all. Scottish buyers purchasing above £175,000 still pay the standard rates above that threshold; the relief simply shifts the band boundary upwards.
A first-time buyer purchasing at £200,000 in Scotland saves £600 compared to a standard buyer at the same price: the standard buyer would pay 2% on £55,000 (£1,100) whereas the first-time buyer pays 2% on £25,000 (£500).
Additional Dwelling Supplement (ADS)
The Additional Dwelling Supplement is a flat-rate charge on top of standard LBTT. It applies when buyers already own one or more residential properties and are purchasing another without replacing their main residence. The current rate is 8% on the full purchase price, applied from 5 December 2024.
ADS rate history
| Period | ADS rate |
|---|---|
| From 5 December 2024 | 8% |
| 16 December 2022 to 4 December 2024 | 6% |
| 25 January 2019 to 15 December 2022 | 4% |
| Before 25 January 2019 | 3% |
When ADS applies
ADS applies when a buyer purchases a residential property in Scotland and, at the end of the effective date of that transaction, owns one or more other residential properties anywhere in the world. For joint buyers, if any one of the buyers already owns residential property, ADS applies to the whole transaction.
From 1 April 2024, only interests of £40,000 or more count when determining whether a buyer owns an additional dwelling. A minor inherited share worth less than £40,000 would not trigger ADS.
When ADS does NOT apply
- The buyer owns only one dwelling at the end of the effective date
- The purchase consideration is below £40,000
- The additional property being acquired has a value below £40,000
- The buyer is replacing their main residence: their previous main residence was disposed of within the previous 36 months (extended from 18 months for effective dates from 1 April 2024)
Non-individuals: companies and trusts
For non-natural persons such as companies, partnerships, and trusts, ADS applies to virtually all purchases of residential property in Scotland where the consideration is £40,000 or more, even if the entity has no other residential properties. This is a significant difference from the rules for individuals.
Transitional provisions (December 2024 rate change)
When the rate increased from 6% to 8% on 5 December 2024, transitional provisions protected buyers who had already committed. The rules are:
- Effective date on or before 4 December 2024: 6% applies regardless of when the return is filed
- Effective date on or after 5 December 2024 but the contract was signed on or before 4 December 2024: 6% still applies (grandfathered)
- Effective date on or after 5 December 2024 and contract signed on or after 5 December 2024: 8% applies
ADS repayment: the 36-month replacement window
If you paid ADS because you had not yet sold your previous main residence, you can claim a repayment once you sell it. To qualify for repayment, three conditions must all be met:
- (a) You sell the previous property within 36 months of buying the new one
- (b) The property you sold was your main residence at some point in the 36 months before the new purchase
- (c) You have lived in the new property as your main residence
For transactions with an effective date from 1 April 2024, where the purchase was made jointly, only one of the joint buyers needs to satisfy conditions (a) and (b). All joint buyers must still satisfy condition (c). Before 1 April 2024 all buyers had to satisfy all three conditions.
Revenue Scotland adds interest to successful repayments at the higher of 0.5% per year or the Bank of England base rate.
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Non-Residential and Commercial Leases
LBTT covers four broad transaction categories, not just residential purchases:
Residential properties
Standard LBTT using the 5-band rate table above
Residential with ADS
Standard LBTT plus the 8% ADS flat charge on full price
Non-residential purchases
Separate progressive band structure for commercial land and buildings
Commercial leases
Calculated on net present value (NPV) of total lease payments using separate NPV rules
Non-residential rates and commercial lease NPV rules follow a different band structure from residential LBTT. Mixed-use transactions (part residential, part commercial) use the non-residential rates. For full technical detail on these categories, the authoritative reference is the Revenue Scotland technical guidance at revenue.scot.
Commercial buyers and landlords should seek professional advice rather than relying on a standard LBTT calculator, as the NPV rules for leases are complex.
How to File an LBTT Return
30-day filing deadline
You must submit an LBTT return within 30 days of the effective date of the transaction (usually completion). This is double the 14-day deadline for SDLT in England and Northern Ireland.
£40,000 filing threshold
A return must be filed for any transaction where the chargeable consideration exceeds £40,000, even if no LBTT is actually due because the price falls below the nil-rate band. This differs from SDLT, which does not generally require a return where no tax is owed below the threshold.
SETS: the online filing system
LBTT returns are filed through SETS, the Scottish Electronic Tax System operated by Revenue Scotland. Solicitors and conveyancers file on behalf of their clients in almost all residential transactions. Buyers acting without legal representation must register with SETS and file directly.
The SETS portal is accessible at revenue.scot. SETS is separate from HMRC's Stamp Taxes Online service; the two systems do not interact.
Step by step
- 1Transaction completes
The effective date is usually the completion date, or an earlier date if the buyer takes possession or pays the bulk of the price before formal completion.
- 2Calculate LBTT (and ADS if applicable)
Use the rate tables above or our Scotland LBTT calculator to work out the amount due.
- 3File the return via SETS
Log in to SETS at revenue.scot. Most buyers do this through their solicitor. If there is no legal representative, register directly on SETS.
- 4Pay any LBTT due
Payment is made at the same time as filing, within the 30-day window. Revenue Scotland confirms receipt and the buyer's solicitor then registers the title with Registers of Scotland.
Contacting Revenue Scotland
Revenue Scotland operates differently from HMRC. There is no dedicated phone helpline with published hours in the same format as HMRC's SDLT helpline. Most contact is handled through the online contact form or through the SETS portal.
How to contact Revenue Scotland
- Online:Contact form available at revenue.scot for general enquiries about LBTT
- SETS portal:For filing returns, amending returns, and repayment claims
- Solicitor:In most transactions, the buyer's solicitor or conveyancer handles all communication with Revenue Scotland directly
Not HMRC: Do not contact HMRC about Scottish property transactions. HMRC has no authority over LBTT and cannot advise on Scottish rates, returns, or repayments. All LBTT matters must go through Revenue Scotland. Similarly, Revenue Scotland cannot advise on SDLT matters in England or Northern Ireland.
Frequently Asked Questions
Does SDLT apply to properties in Scotland?
No. Stamp Duty Land Tax was replaced in Scotland by Land and Buildings Transaction Tax from 1 April 2015. If you are buying a property in Scotland, you pay LBTT to Revenue Scotland. HMRC has no involvement. Properties in England and Northern Ireland remain subject to SDLT. Wales uses its own Land Transaction Tax.
What is the current ADS rate in Scotland?
The Additional Dwelling Supplement rate is currently 8%. This applies to the full purchase price in addition to standard LBTT. The rate increased from 6% to 8% on 5 December 2024. Buyers whose contracts were signed before that date but who completed after it continue to pay at the 6% rate under transitional provisions.
How long do I have to file an LBTT return?
You must file an LBTT return within 30 days of the effective date of the transaction. The effective date is normally the completion date. This 30-day window is longer than the 14-day deadline for SDLT in England. Your solicitor will usually file on your behalf through the SETS system. If the purchase price is over £40,000, a return is required even if no LBTT is due.
Can I reclaim ADS if I sell my previous home?
Yes, provided you meet all three conditions: you sell your previous main residence within 36 months of buying the new property; that previous property was your main residence at some point in the 36 months before your new purchase; and you have lived in the new property as your main residence. The 36-month window was extended from 18 months for transactions with an effective date from 1 April 2024. Revenue Scotland will pay interest on successful repayments.
Is the LBTT nil rate threshold the same as the SDLT threshold?
No. The LBTT nil rate threshold for standard residential purchases is £145,000, compared to £125,000 for SDLT in England. For first-time buyers, LBTT raises the threshold to £175,000, whereas SDLT allows no SDLT on the first £300,000 for qualifying first-time buyers. This means LBTT first-time buyer relief is considerably less valuable than the English equivalent for higher-priced properties.
Do companies pay ADS in Scotland?
Yes. Non-natural persons such as limited companies, trusts, and partnerships pay ADS on virtually all purchases of Scottish residential property where the consideration exceeds £40,000. Unlike individuals, companies do not get an exemption for buying their first residential property. The 8% ADS charge applies even if the company has never owned property before.
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.
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