In Scotland you pay Land and Buildings Transaction Tax (LBTT) instead of Stamp Duty Land Tax when you buy a home. It’s collected by Revenue Scotland, and its bands, first-time buyer relief and second-home supplement are all different from the rest of the UK. These are the 2026/27 rates, which have applied since 1 April 2021. To work out the tax on a price, use the stamp duty calculator and choose Scotland.
LBTT rates
| Portion of the price | LBTT rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Over £750,000 | 12% |
Revenue Scotland’s own example: on a £235,000 home, the first £145,000 is tax-free and 2% is due on the remaining £90,000, so LBTT is £1,800.
First-time buyer relief
In Scotland, first-time buyers pay no LBTT on the first £175,000 of the price (a saving of up to £600), at any price, as long as every buyer is a first-time buyer who will live there as their only or main home.- The nil band rises to £175,000, saving up to £600; there is no maximum price.
- Every buyer is a first-time buyer who intends to live in the home as their only or main residence.
- A first-time buyer has never bought a home in Scotland or an equivalent interest anywhere else.
Unlike first-time buyer relief in England and Northern Ireland, there’s no price limit: a first-time buyer saves the same amount on a £400,000 home as on a £200,000 one. On the £235,000 home above, a first-time buyer pays £1,200.
Additional Dwelling Supplement
In Scotland, buying a home for £40,000 or more when you'll own more than one dwelling adds the Additional Dwelling Supplement of 8% of the whole price, on top of LBTT, unless the home replaces a main residence you sold in the previous 36 months; sell your old main home within 36 months of buying and you can claim it back.- The ADS is 8% of the whole price (since 5 December 2024), paid on top of LBTT.
- It applies when you'll own more than one dwelling at the end of the day of purchase and the price is £40,000 or more (a property, or your share of one, worth less than £40,000 doesn't count).
- It doesn't apply if you sold your only or main residence in the 36 months before buying your new main residence.
- If you buy first, you can claim the ADS back if you sell your previous main home within 36 months of buying the new one and live in the new home as your main residence.
On a £300,000 buy-to-let the ADS alone is £24,000, and with LBTT the total is £28,600.
LBTT and stamp duty compared
For someone buying their only home (not a first-time buyer):
| Price | Scotland (LBTT) | England and NI (SDLT) |
|---|---|---|
| £200,000 | £1,100 | £1,500 |
| £300,000 | £4,600 | £5,000 |
| £400,000 | £13,350 | £10,000 |
| £600,000 | £33,350 | £20,000 |
| £800,000 | £54,350 | £30,000 |
Paying LBTT
The LBTT return and the tax go to Revenue Scotland, not HMRC. A return is needed for most purchases of residential property of £40,000 or more, even when no tax is due.
Related guides
- Stamp duty in the UK: SDLT, LBTT and LTT explained
- Stamp duty calculator
- Land Transaction Tax in Wales
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