Helping you understand LBTT better
Stamp Duty in Scotland is now called Land and Buildings Transaction Tax (LBTT).
Scotland Stamp duty Land Tax
The Scottish Land and Buildings Transaction Tax system is based loosely in the existing Stamp Duty Land Tax scheme. LBTT rates increase in line with property price.
Scotland LBTT rates
From April 2015 the new LBTT rates were introduced. Under this new system the buyers pay tax on the amounts between the bands and not on the full purchase price.
Please remember that the taxation rate in the UK are different rates to the rates in Scotland.
LBTT current rates
|Tax Band||Normal Rate||Additional Dwelling *|
|less than £145k||0%||4%**|
|£145k to £250k||2%||6%|
|£250k to £325k||5%||9%|
|£325k to £750k||10%||14%|
|rest over £750k||12%||16%|
* Percentage figures show LBTT and ADS rates combined. ADS is calculated in addition to LBTT and is applied at 4% to the total purchase price above £40k.
** An additional dwelling purchased for less than £40k will attract 0% tax. For purchases from £40k to £145k the rate will be 4% on the full purchase price.
No tax will be paid on the first £145,000 of a single property. Buyers will pay 2% on properties that sit between £145,000 and £250,000. On £250,000 and £350,000 they will pay 5%. The next band up to £750,000 will pay 10% and then pay 12% on anything over.
Additional properties and LBTT
These are usually buy to let investments and second homes. Since April 2016 an “Additional Dwelling Supplement” was introduced. This now applies to all transactions that involves the purchase of an additional property.
The ‘Additional Dwelling Supplement’ has increased from 3% to 4% since January 2019. The surcharge applies to the full purchase price above the initial threshold of £40,000 which stays inline with the rest of the UK.
First time buyers and LBTT
LBTT first-time buyers relief came into place from June 2018, the new threshold are shown below:
|Tax Band||First Time Buyer Rate|
|less than £175k||0%|
|£175k to £250k||2%|
|£250k to £325k||5%|
|£325k to £750k||10%|
|rest over £750k||12%|
|The Scottish Government introduced first time buyer relief from June 2018.|
The LBTT initial threshold was raised to £175,000 so first-time buyers will not attract any tax.
How much LBTT will I have to pay?
The calculators below will indicate how much tax you are liable to pay for both single and additional freehold residential property for purchases in Scotland.