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LBTT Calculator Scotland 2025/26

Calculate Land and Buildings Transaction Tax (LBTT) on residential property purchases in Scotland. Updated for 2025/26 with first-time buyer relief and the Additional Dwelling Supplement.

How LBTT Works in Scotland

Land and Buildings Transaction Tax (LBTT) is Scotland's property transaction tax, replacing Stamp Duty Land Tax (SDLT) for properties in Scotland from 1 April 2015. Like SDLT, LBTT is a progressive tax — you pay different rates on different portions of the property price, not a single rate on the whole amount.

LBTT is administered by Revenue Scotland, the Scottish tax authority, rather than HMRC. It must be submitted and paid within 30 days of the effective date of the transaction (usually the completion date). Your solicitor will normally handle the submission on your behalf.

The progressive nature of LBTT means the effective tax rate increases gradually as the purchase price rises. A property at £145,000 pays no LBTT, while a property at £300,000 pays £4,600 (an effective rate of about 1.5%). This differs from the old slab system that SDLT used prior to 2014, where the highest applicable rate was charged on the entire price.

LBTT Rates for 2025/26

The current LBTT rates for residential property purchases in Scotland are:

Standard Rates

Purchase Price BandLBTT Rate
Up to £145,0000%
£145,001 to £250,0002%
£250,001 to £325,0005%
£325,001 to £750,00010%
Over £750,00012%

First-Time Buyer Rates

Purchase Price BandLBTT Rate
Up to £175,0000%
£175,001 to £250,0002%
£250,001 to £325,0005%
£325,001 to £750,00010%
Over £750,00012%

The first-time buyer relief in Scotland raises the nil-rate band from £145,000 to £175,000, saving eligible buyers up to £600. The remaining rate bands above £175,000 are the same as the standard rates.

Additional Dwelling Supplement (ADS)

From 1 April 2024, the ADS rate is 8% of the total purchase price, payable in addition to the standard LBTT rates. This applies when you purchase a second or subsequent residential property. The ADS is calculated on the total purchase price, not just the portion above a threshold.

You can reclaim the ADS if you sell your previous main residence within 18 months of purchasing the new one. This recognises that buyers who are genuinely moving home sometimes need to own two properties temporarily during the moving process.

Differences Between LBTT and SDLT

Although LBTT and SDLT are both progressive property transaction taxes, there are several important differences:

  • Nil-rate band: Scotland's nil-rate band is £145,000, higher than England's £125,000, meaning no LBTT is due on cheaper properties.
  • Additional dwelling rate: Scotland's ADS is 8%, significantly higher than England's 5% surcharge.
  • First-time buyer relief: Scotland's first-time buyer nil-rate band is £175,000, while England's is £300,000 (but only on properties up to £500,000).
  • No non-UK resident surcharge: Scotland does not charge a surcharge for overseas buyers, unlike England's 2%.
  • Filing deadline: LBTT returns must be filed within 30 days, compared to 14 days for SDLT.

Worked Examples

Example 1: Home Mover at £250,000

A home mover purchasing a £250,000 property in Scotland:

  • 0% on first £145,000: £0
  • 2% on £145,001 to £250,000: £2,100
  • Total LBTT: £2,100
  • Effective rate: 0.8%

Example 2: First-Time Buyer at £250,000

A first-time buyer purchasing the same £250,000 property in Scotland:

  • 0% on first £175,000: £0
  • 2% on £175,001 to £250,000: £1,500
  • Total LBTT: £1,500
  • Saving vs home mover: £600

Example 3: Additional Dwelling at £400,000

A buyer purchasing a £400,000 additional residential property in Scotland (8% ADS applies on all bands):

  • (0% + 8%) on first £145,000: £11,600
  • (2% + 8%) on £145,001 to £250,000: £10,500
  • (5% + 8%) on £250,001 to £325,000: £9,750
  • (10% + 8%) on £325,001 to £400,000: £13,500
  • Total LBTT: £45,350
  • Effective rate: 11.3%

Common Mistakes with LBTT

1. Using English Stamp Duty Rates

SDLT does not apply to property purchases in Scotland. If you are buying in Scotland, you must use the LBTT rates. The thresholds and rates are different and using the wrong system will give an incorrect result. Our calculator automatically applies the correct Scottish LBTT bands.

2. Underestimating the Additional Dwelling Supplement

Scotland's ADS at 8% is significantly higher than England's 5% additional property surcharge. On a £300,000 second property, the ADS alone adds £24,000 in LBTT, plus the standard LBTT of £4,600, for a total of £28,600. Many buyers are caught off guard by this substantial extra cost.

3. Forgetting the ADS Reclaim

If you buy a new main residence before selling your old one, you will pay the ADS upfront. However, you can claim a refund if you sell your previous main residence within 18 months. Many buyers forget to submit this reclaim or miss the deadline, losing thousands of pounds.

4. Not Accounting for the 30-Day Filing Window

LBTT returns must be filed and paid within 30 days of the effective date (completion). Late filing incurs automatic penalties and interest charges. Ensure your solicitor submits the return promptly after completion.

Frequently Asked Questions

How much is LBTT on a £250,000 property in Scotland?
For a home mover purchasing a £250,000 property in Scotland in 2025/26, the LBTT would be £2,100. This is calculated as: 0% on the first £145,000 (£0) and 2% on the remaining £105,000 (£2,100). A first-time buyer purchasing the same property would pay £1,500 as the nil-rate band is £175,000, so only £75,000 is taxed at 2%.
What is the LBTT threshold in Scotland?
The LBTT nil-rate threshold for standard residential purchases in Scotland is £145,000. This means no LBTT is payable on properties costing £145,000 or less. For first-time buyers, the nil-rate band is higher at £175,000. Unlike England, Scotland did not introduce temporary threshold changes, so these thresholds have been stable since April 2021.
Do first-time buyers in Scotland pay LBTT?
First-time buyers in Scotland benefit from a higher nil-rate band of £175,000, compared to £145,000 for home movers. The remaining bands above £175,000 are the same as the standard rates. This means a first-time buyer purchasing a property up to £175,000 pays no LBTT at all. For a £250,000 property, a first-time buyer saves £600 compared to a home mover (£1,500 vs £2,100).
What is the Additional Dwelling Supplement in Scotland?
The Additional Dwelling Supplement (ADS) is Scotland's equivalent of the additional property surcharge in England. From 1 April 2024, the ADS rate is 8% of the total purchase price, payable on top of the standard LBTT rates. This applies when purchasing a second or subsequent residential property. You can reclaim the ADS if you sell your previous main residence within 18 months of purchasing the new one.
How does LBTT differ from stamp duty in England?
LBTT (Land and Buildings Transaction Tax) replaced SDLT in Scotland on 1 April 2015. Key differences include: different rate bands and thresholds (Scotland's nil-rate band is £145,000 vs England's £125,000); a higher additional dwelling supplement (8% vs 5%); a higher first-time buyer threshold (£175,000 vs £300,000 but with narrower relief); and no non-UK resident surcharge in Scotland. LBTT is administered by Revenue Scotland, not HMRC.
Is there a non-UK resident surcharge for LBTT in Scotland?
No. Unlike England and Northern Ireland, Scotland does not apply a non-UK resident surcharge on LBTT. The same LBTT rates apply regardless of whether the buyer is a UK resident or not. This can make Scottish property purchases slightly cheaper for overseas buyers compared to equivalent purchases in England.

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