Mortgages & Property

LBTT vs Stamp Duty — Scottish Property Tax Guide

Land and Buildings Transaction Tax (LBTT) explained. How Scottish property tax compares to stamp duty in England and what you'll pay in Scotland.

By PocketWise · · 4 min read

Mortgage information is general guidance only. Mortgages are regulated by the FCA. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Consult an FCA-regulated mortgage adviser before making decisions.

Scotland has its own property transaction tax — Land and Buildings Transaction Tax (LBTT).

LBTT Basics

What It Is

Feature Details
Full name Land and Buildings Transaction Tax
Replaced Stamp Duty in Scotland (2015)
Applies in Scotland only
Set by Scottish Parliament
Collected by Revenue Scotland

How It Differs from Stamp Duty

Feature LBTT (Scotland) SDLT (England)
Threshold £145,000 £250,000
FTB threshold £175,000 £425,000
Top rate 12% 12%
Additional property +6% +5%
Calculation Progressive Progressive

LBTT Rates 2025

Residential Property (Standard)

Purchase Price LBTT 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 Relief

Purchase Price LBTT Rate
£0-175,000 0%
£175,001-250,000 2%
£250,001-325,000 5%
£325,001-750,000 10%
Over £750,000 12%

Additional Dwelling Supplement (ADS)

Situation Additional Rate
Second home +6%
Buy-to-let +6%
Company purchase +6%
Added to Entire purchase price

LBTT Calculations

Standard Purchase Examples

Property Price LBTT Due Calculation
£150,000 £100 2% on £5,000
£200,000 £1,100 2% on £55,000
£250,000 £2,100 2% on £105,000
£300,000 £4,600 £2,100 + 5% on £50,000
£350,000 £7,100 £4,600 + 10% on £25,000
£400,000 £12,100 £7,100 + 10% on £50,000
£500,000 £22,100 Above + 10% on further £100,000

First-Time Buyer Examples

Property Price LBTT Due Saving vs Standard
£150,000 £0 £100
£175,000 £0 £600
£200,000 £500 £600
£250,000 £1,500 £600
£300,000 £4,000 £600
£350,000 £6,500 £600

Additional Property Examples

Property Price Standard +6% ADS Total
£150,000 £100 £9,000 £9,100
£200,000 £1,100 £12,000 £13,100
£250,000 £2,100 £15,000 £17,100
£300,000 £4,600 £18,000 £22,600
£400,000 £12,100 £24,000 £36,100

LBTT vs Stamp Duty Comparison

Standard Rates Comparison

Property Price LBTT SDLT Difference
£150,000 £100 £0 SDLT cheaper
£200,000 £1,100 £0 SDLT cheaper
£250,000 £2,100 £0 SDLT cheaper
£300,000 £4,600 £2,500 SDLT cheaper
£400,000 £12,100 £7,500 SDLT cheaper
£500,000 £22,100 £12,500 SDLT cheaper
£750,000 £47,100 £31,250 SDLT cheaper

First-Time Buyer Comparison

Property Price LBTT (FTB) SDLT (FTB) Difference
£175,000 £0 £0 Same
£200,000 £500 £0 SDLT cheaper
£250,000 £1,500 £0 SDLT cheaper
£300,000 £4,000 £0 SDLT cheaper
£400,000 £11,500 £0 SDLT cheaper
£425,000 £14,000 £0 SDLT cheaper
£500,000 £21,500 £3,750 SDLT cheaper

Additional Property Comparison

Property Price LBTT (+6%) SDLT (+5%) Difference
£200,000 £13,100 £11,500 SDLT cheaper
£300,000 £22,600 £17,500 SDLT cheaper
£400,000 £36,100 £27,500 SDLT cheaper
£500,000 £52,100 £42,500 SDLT cheaper

First-Time Buyer Relief

Eligibility

Requirement Details
Not owned before Any property, anywhere
Property is home Not buy-to-let
In Scotland Property located there
After June 2018 When relief started

Joint Purchases

Situation Relief?
Both FTBs Yes - full relief
One FTB, one not No relief
All must qualify For relief to apply

Relief Amount

Property Price Standard LBTT FTB LBTT Saving
Up to £175,000 Varies £0 Up to £600
Up to £250,000 £2,100 £1,500 £600
Any price Max £600

Additional Dwelling Supplement

When ADS Applies

Situation ADS?
Buying second home Yes
Buy-to-let purchase Yes
Keeping previous home Yes
Company buying residential Yes
Replacing main home (sold) No
Selling within 18 months Refund possible

Selling Previous Home

Timing ADS Position
Sold before buying No ADS
Buying before selling ADS applies
Sell within 18 months Claim refund
Takes longer than 18 months ADS not refunded

ADS Refund

To Get Refund Details
Sell previous home Within 18 months
Previous was main home Not investment
Claim within 12 months of sale
Apply to Revenue Scotland

Non-Residential LBTT

Commercial Property Rates

Purchase Price Rate
£0-150,000 0%
£150,001-250,000 1%
Over £250,000 5%

Mixed Use

Property Type Rates
Part residential, part commercial Non-residential rates
Can be beneficial For mixed-use purchases

How to Pay LBTT

Payment Process

Step Details
Solicitor calculates As part of purchase
Paid at completion Usually by solicitor
Revenue Scotland Receives payment
Within 30 days Of completion

Late Payment

Consequence Amount
Filing late £100 penalty
3 months late Additional £200
6 months late Further penalty
Interest On unpaid tax

Planning Considerations

Timing Moves

Strategy Benefit
Sell before buying Avoid ADS
Complete sale first Same day possible
18-month safety If can’t sell first

First-Time Buyer Strategy

Consider Impact
Buy on own first Both get FTB relief separately
Then buy together Neither gets relief
Depends on Property values and plans

Summary

LBTT Key Points

Feature Scotland
Nil rate threshold £145,000
FTB threshold £175,000
ADS rate 6%
Compared to SDLT Generally higher
Exception Under £145,000 (lower)

Quick Reference

Buying Check
Main home Standard rates
First home FTB relief
Second home +6% ADS
Replacing home Sell first or claim refund

Calculator

Tool Details
Revenue Scotland Official calculator
Use for Accurate figures
Include ADS If applicable
Before buying Know exact amount

Your home may be repossessed if you do not keep up repayments on your mortgage. PocketWise provides information and guidance — we do not offer financial advice. Seek independent mortgage advice before making decisions about borrowing.

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Sources

  1. HMRC — Stamp Duty Land Tax