Scotland LBTT Guide
The complete guide to Land and Buildings Transaction Tax.
£145k
Nil-rate threshold
£175k
FTB nil-rate
8%
ADS rate
Revenue Scot
Tax authority
In this article
What is LBTT?
Land and Buildings Transaction Tax (LBTT) is Scotland's property transaction tax, replacing UK Stamp Duty in Scotland from April 2015. It's administered by Revenue Scotland.
LBTT uses a progressive rate system similar to income tax - you only pay the higher rate on the portion of the price above each threshold, not on the whole purchase price.
Current LBTT Rates (January 2026)
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% |
First-Time Buyer Rates
First-time buyers in Scotland get a higher nil-rate threshold of £175,000 (compared to £145,000 for other buyers). This provides a saving of up to £600.
| Band | Rate |
|---|---|
| £0 - £175,000 | 0% |
| £175,001 - £250,000 | 2% |
| £250,001 - £325,000 | 5% |
| Above £325,000 | Standard rates apply |
Additional Dwelling Supplement (ADS)
8% ADS on Additional Properties
Scotland's Additional Dwelling Supplement is 8% (increased from 6% in December 2024) - higher than England's 5% surcharge. It applies to the entire purchase price when buying additional residential properties.
The ADS applies to second homes, buy-to-let properties, and any additional residential property purchases over £40,000.
Example: £300,000 Second Home in Scotland
| Component | Amount |
|---|---|
| LBTT (£0-£145k @ 0%) | £0 |
| LBTT (£145k-£250k @ 2%) | £2,100 |
| LBTT (£250k-£300k @ 5%) | £2,500 |
| ADS (£300k @ 8%) | £24,000 |
| Total | £28,600 |
ADS Refund
If you paid ADS because you bought a new home before selling your old one, you can claim a refund if you sell your previous main residence within 18 months of buying the new property.
This is shorter than England's 36-month window, so timing is more critical in Scotland.
Scotland vs England Comparison
| Property Price | Scotland LBTT | England SDLT | Difference |
|---|---|---|---|
| £200,000 | £1,100 | £1,500 | -£400 |
| £300,000 | £4,600 | £5,000 | -£400 |
| £500,000 | £23,350 | £15,000 | +£8,350 |
| £750,000 | £48,350 | £27,500 | +£20,850 |
Scotland is cheaper for properties under ~£325,000 but becomes more expensive for higher-value properties.
How to Pay LBTT
LBTT returns must be submitted to Revenue Scotland within 30 days of the effective date (usually completion). Your solicitor handles this process, similar to SDLT in England.
Late filing attracts penalties: £100 initially, then additional penalties after 3, 6, and 12 months.
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.
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