Current Scotland LBTT Rates 2026
Complete Land and Buildings Transaction Tax rate tables for Scotland. Includes standard rates, first-time buyer relief, and the Additional Dwelling Supplement (ADS) at 8%.
In this article
Current LBTT Rate Tables
Land and Buildings Transaction Tax (LBTT) is Scotland's property transaction tax, replacing stamp duty in Scotland since 1 April 2015. It is administered by Revenue Scotland, not HMRC. The rates below are current as of February 2026 and apply to all residential purchases in Scotland. Use our Scotland LBTT calculator to find your exact liability instantly.
LBTT is a marginal rate tax
Like income tax, LBTT is charged only on the portion of the property price that falls within each band. You do not pay the higher rate on the full purchase price.
Standard Residential Rates
| Band | Rate |
|---|---|
| £0 - £145,000 | 0% |
| £145,001 - £250,000 | 2% |
| £250,001 - £325,000 | 5% |
| £325,001 - £750,000 | 10% |
| Over £750,000 | 12% |
These rates apply to individuals buying their main residence (or only property).
With ADS - Additional Properties
| Band | Rate |
|---|---|
| £0 - £145,000 | 8% |
| £145,001 - £250,000 | 10% |
| £250,001 - £325,000 | 13% |
| £325,001 - £750,000 | 18% |
| Over £750,000 | 20% |
ADS of 8% is added to the standard rates above. These combined rates apply to all additional residential properties.
Standard Residential Rates
The standard residential LBTT rates apply to individuals purchasing their sole or main residence. Scotland's nil-rate band starts at £145,000, which is higher than England's £125,000 threshold, making LBTT cheaper than SDLT for many lower-value purchases.
The top rate of 12% applies to any portion of the purchase price above £750,000. For context, the average Scottish house price (around £180,000 to £200,000) means most Scottish buyers pay a relatively modest LBTT bill.
Standard Rate Breakdown
- 0% on the first £145,000 of the purchase price
- 2% on the portion between £145,001 and £250,000
- 5% on the portion between £250,001 and £325,000
- 10% on the portion between £325,001 and £750,000
- 12% on any portion above £750,000
For a full breakdown of how Scotland's tax system compares to the rest of the UK, see our complete Scotland LBTT guide and our UK-wide stamp duty rates for 2026.
First-Time Buyer Relief
Scotland offers first-time buyer (FTB) relief that raises the nil-rate band from £145,000 to £175,000. This means first-time buyers pay no LBTT on the first £175,000 of the purchase price. The maximum saving from this relief is £600.
To qualify, you (and any joint buyer) must never have previously owned a dwelling anywhere in the world. Unlike England's FTB relief, Scotland's version has no upper property price limit and applies to any residential purchase regardless of value.
First-Time Buyer Rates
| Band | Rate |
|---|---|
| £0 - £175,000 | 0% |
| £175,001 - £250,000 | 2% |
| £250,001 - £325,000 | 5% |
| £325,001 - £750,000 | 10% |
| Over £750,000 | 12% |
The nil-rate band is raised to £175,000. All higher bands remain the same as standard rates.
FTB Relief Applies
- Never owned property anywhere in the world
- All joint buyers must qualify
- No maximum property price limit
- Maximum saving: £600
FTB Relief Does Not Apply If
- You have previously owned residential property
- Any joint buyer has previously owned property
- You are buying with ADS (additional dwelling)
Additional Dwelling Supplement (ADS)
The Additional Dwelling Supplement (ADS) applies when purchasing an additional residential property in Scotland while already owning one or more residential properties anywhere in the world. ADS was increased from 6% to 8% in December 2024, making Scotland's surcharge for additional properties the highest in the UK.
Important: How ADS Is Calculated
Unlike England's 5% additional property surcharge (which is marginal), ADS is charged on the entire purchase price, not just the portions in each band. This is a flat 8% applied to the full property value, in addition to the standard marginal LBTT.
For example, on a £300,000 additional property: standard LBTT = £4,600 + ADS = £24,000 (8% of £300,000) = total £28,600.
Combined Rates With ADS (Standard + 8%)
| Band | Rate |
|---|---|
| £0 - £145,000 | 8% |
| £145,001 - £250,000 | 10% |
| £250,001 - £325,000 | 13% |
| £325,001 - £750,000 | 18% |
| Over £750,000 | 20% |
These are the effective combined rates: standard LBTT marginal bands plus 8% ADS on the full purchase price. The table shows the blended effect.
ADS Reclaim
If you sell your previous main residence within 18 months of buying an additional property, you can apply to Revenue Scotland for a full refund of the ADS paid. This reclaim window is 18 months in Scotland, compared to 36 months in England and Wales.
ADS Reclaim Conditions
- Previous main residence sold within 18 months of the new purchase
- Claim must be submitted to Revenue Scotland (not HMRC)
- Full ADS amount is refunded if conditions are met
- 18-month window starts from the date of purchase
Worked Examples
The following examples show how LBTT is calculated at common Scottish property price points for three different buyer types.
£200,000 Property
Standard Buyer
0% on £0-£145,000 = £0
2% on £145,001-£200,000 = £1,100
Total LBTT: £1,100
First-Time Buyer
0% on £0-£175,000 = £0
2% on £175,001-£200,000 = £500
Total LBTT: £500
With ADS
Standard LBTT = £1,100
ADS: 8% of £200,000 = £16,000
Total LBTT: £17,100
£325,000 Property
Standard Buyer
0% on £0-£145,000 = £0
2% on £145,001-£250,000 = £2,100
5% on £250,001-£325,000 = £3,750
Total LBTT: £5,850
First-Time Buyer
0% on £0-£175,000 = £0
2% on £175,001-£250,000 = £1,500
5% on £250,001-£325,000 = £3,750
Total LBTT: £5,250
With ADS
Standard LBTT = £5,850
ADS: 8% of £325,000 = £26,000
Total LBTT: £31,850
£500,000 Property
Standard Buyer
0% on £0-£145,000 = £0
2% on £145,001-£250,000 = £2,100
5% on £250,001-£325,000 = £3,750
10% on £325,001-£500,000 = £17,500
Total LBTT: £23,350
First-Time Buyer
0% on £0-£175,000 = £0
2% on £175,001-£250,000 = £1,500
5% on £250,001-£325,000 = £3,750
10% on £325,001-£500,000 = £17,500
Total LBTT: £22,750
With ADS
Standard LBTT = £23,350
ADS: 8% of £500,000 = £40,000
Total LBTT: £63,350
Note: All calculations above are for residential property in Scotland. Use our Scotland LBTT calculator for exact figures including all buyer types and property values.
Revenue Scotland
LBTT is collected and administered by Revenue Scotland, Scotland's devolved tax authority. This is entirely separate from HMRC, which handles SDLT in England and Northern Ireland. All LBTT returns must be filed with Revenue Scotland, not HMRC.
Your solicitor will typically handle the LBTT return on your behalf as part of the conveyancing process. The return must be submitted within 30 days of the effective date of the transaction (usually the date of completion). Late filing attracts penalties from Revenue Scotland.
Revenue Scotland Key Facts
- Established 1 April 2015 alongside LBTT
- Online LBTT returns via Revenue Scotland portal
- Return must be filed within 30 days of completion
- Handles ADS reclaim applications directly
- Separate from HMRC and SDLT obligations
Non-Residential LBTT
Revenue Scotland also administers LBTT on non-residential (commercial) property transactions in Scotland. Commercial rates differ from residential rates and do not include an ADS equivalent.
This page covers residential rates only. Commercial buyers should consult a solicitor or Revenue Scotland directly.
Key Differences from England SDLT
Scotland's LBTT differs from England's SDLT in several important ways. If you are relocating from England or comparing properties across the border, understanding these differences is essential. See our England SDLT rates for a direct side-by-side comparison.
| Feature | Scotland LBTT | England SDLT |
|---|---|---|
| Tax Authority | Revenue Scotland | HMRC |
| Nil-Rate Threshold | £145,000 | £125,000 |
| FTB Nil-Rate Threshold | £175,000 (max saving £600) | £300,000 (max saving £5,000) |
| Additional Property Surcharge | 8% ADS (on full price) | 5% (marginal) |
| ADS / Surcharge Refund Window | 18 months | 36 months |
| Filing Deadline | 30 days | 14 days |
| Band Structure | 5 bands (max 12%) | 5 bands (max 12%) |
Which Is Cheaper?
Scotland is typically cheaper for properties under around £145,000 (no LBTT vs SDLT starting at £125,001) and broadly competitive up to £325,000. Above that, Scotland can become more expensive due to the 10% band kicking in at £325,001 vs England's 5% band extending to £925,000. See our Wales LTT rates for a three-way comparison.
Frequently Asked Questions
What is the current LBTT rate in Scotland for 2026?
The current LBTT rates for standard residential buyers in Scotland are: 0% up to £145,000; 2% between £145,001 and £250,000; 5% between £250,001 and £325,000; 10% between £325,001 and £750,000; and 12% on any portion above £750,000. First-time buyers benefit from a raised nil-rate threshold of £175,000. These rates have not changed since LBTT was introduced in 2015 (for standard bands), though the ADS was raised to 8% in December 2024.
What is the ADS rate in Scotland and who pays it?
The Additional Dwelling Supplement (ADS) is 8% of the total purchase price. It applies to anyone buying a residential property in Scotland who already owns one or more residential properties anywhere in the world. The ADS was increased from 6% to 8% in December 2024. It is charged on the entire purchase price (not marginally like the standard bands) and is paid in addition to the standard LBTT. It can be reclaimed if your previous main residence is sold within 18 months.
How do I reclaim ADS if I sell my previous home?
If you sell your previous main residence within 18 months of buying an additional property where you paid ADS, you can submit a reclaim to Revenue Scotland. The reclaim must be made within 12 months of the sale of the previous main residence (or within 12 months of the filing date of the original LBTT return, whichever is later). Revenue Scotland will refund the full ADS amount if your claim is approved. Your solicitor can assist with this process.
Do first-time buyers pay LBTT in Scotland?
First-time buyers in Scotland benefit from a raised nil-rate threshold of £175,000 instead of the standard £145,000. This means no LBTT is due on the first £175,000 of the purchase price. The maximum saving is £600 compared to the standard rates. Unlike England, there is no upper property price cap on Scotland's FTB relief. However, the saving is much smaller than England's equivalent relief (up to £5,000).
Is LBTT paid to HMRC or Revenue Scotland?
LBTT is paid to Revenue Scotland, not HMRC. Revenue Scotland is Scotland's devolved tax authority and is entirely separate from HMRC. Your solicitor will file the LBTT return with Revenue Scotland on your behalf within 30 days of completion. HMRC has no involvement in LBTT. If you are also paying SDLT on a property in England, that goes separately to HMRC.
Calculate Your Scotland LBTT
Use our Scotland LBTT calculator for an instant, accurate estimate including ADS and first-time buyer relief.
Use the Scotland LBTT Calculator
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.