Stamp Duty in Scotland: how LBTT works
Scotland does not use Stamp Duty. Home buyers pay Land and Buildings Transaction Tax (LBTT) instead, with different bands, its own first-time buyer relief and an 8% supplement on additional homes.
LBTT residential rates.
Like Stamp Duty, LBTT is charged in slices: each rate applies only to the part of the price inside that band.
| Price band | Rate |
|---|---|
| £0 to £145,000 | 0% |
| £145,000 to £250,000 | 2% |
| £250,000 to £325,000 | 5% |
| £325,000 to £750,000 | 10% |
| Above £750,000 | 12% |
First-time buyers get a larger 0% band, up to £175,000. That saves up to £600 and there is no price cap.
Additional homes pay the Additional Dwelling Supplement (ADS): 8% of the whole price, on top of normal LBTT, for purchases of £40,000 or more.
How much LBTT will you pay?
| Price | Standard buyer | First-time buyer | Additional home (with ADS) |
|---|---|---|---|
| £200,000 | £1,100 | £500 | £17,100 |
| £300,000 | £4,600 | £4,000 | £28,600 |
| £450,000 | £18,350 | £17,750 | £54,350 |
| £750,000 | £48,350 | £47,750 | £108,350 |
Choose Scotland in the Stamp Duty calculator for a band-by-band breakdown.
LBTT rules that catch people out.
- Replacing your main home: if you buy a new main home before selling your old one, you usually pay ADS up front and can reclaim it if you sell the previous home within 36 months.
- Joint buyers: first-time buyer relief needs every buyer to be a first-time buyer.
- Deadline: the return and payment are due within 30 days of the effective date, usually completion. Your solicitor normally handles this.
- Compared with England: on cheaper homes LBTT can be lower than SDLT, but above about £325,000 it rises faster because of the 10% band.
LBTT FAQs
Is LBTT the same as Stamp Duty?
It does the same job, but it is a separate Scottish tax with different bands, administered by Revenue Scotland rather than HMRC.
Do first-time buyers pay LBTT?
Only on the part of the price above £175,000. A first-time buyer paying £175,000 or less pays no LBTT.
What is the Additional Dwelling Supplement?
An extra 8% of the whole purchase price when you buy an additional home for £40,000 or more, such as a second home or buy-to-let.
Stamp Duty in Wales (LTT) → · Stamp Duty on a second home → · First-time buyers in England →
Source: Revenue Scotland residential LBTT. Estimates for planning only.