Land and Buildings Transaction Tax – Scotland’s Stamp Duty explained

Land and Buildings Transaction Tax (LBTT) is a charge you’ll pay if you buy a property or piece of land in Scotland that costs over £145,000, or £40,000 if it’s a second home. It’s similar to Stamp Duty in England and Northern Ireland.

Land and Buildings Transaction Tax is based on:

• the price of the property you’re buying
• if you’ll own more than one property, and
• if you (and anyone you’re buying with) is a first-time buyer:
  • never owned a property before
  • will use the property as your main home.

Use our LBTT calculator to help you work out what you’ll need to pay.

You’ll pay different rates if the price of your property spans more than one band.

For example, if you’re buying your main home (worth £300,000) you’ll pay around £4,600 in Land and Buildings Transaction Tax (LBTT). 

Here’s how it works:

• You pay nothing on the first £145,000.

• You pay 2% on the amount from £145,001 to £250,000.

That’s £105,000 × 2% = £2,100.

• You pay 5% on the amount from £250,001 to £300,000.

That’s £50,000 × 5% = £2,500.

Add these together: £2,100 + £2,500 = £4,600 due in LBTT.

If you’re buying a second home or a buy-to-let property, you’ll also pay the Additional Dwelling Supplement (ADS). This is 8% of the full purchase price. 

You can also check the current rates and calculate taxOpens in a new window at Revenue Scotland.

You or your solicitor will need to submit a Land and Buildings Transaction Tax return, even if you don’t need to pay anything.

Either way, you’re responsible for making sure it’s all submitted on time.

You have 30 days after buying your property to submit a Land and Buildings Transaction Tax return and pay any tax due.

If you don’t submit a LBTT return and pay the tax, Revenue Scotland might charge you penalties and interest.