| Tax band: | % | Taxable sum: | Tax: |
| Tax band: Up to £145,000 | %:0% | Taxable sum:£0 | Tax:£0 |
| Tax band: £145,001 to £250,000 | %:2% | Taxable sum:£0 | Tax:£0 |
| Tax band: £250,001 to £325,000 | %:5% | Taxable sum:£0 | Tax:£0 |
| Tax band: £325,001 to £750,000 | %:10% | Taxable sum:£0 | Tax:£0 |
| Tax band: £750,001 + | %:12% | Taxable sum:£0 | Tax:£0 |
Understanding Land and Buildings Transaction Tax (LBTT)
Land and Buildings Transaction Tax (LBTT) is the tax payable when purchasing a residential property in Scotland (it also applies to non-residential purchase and leases). It is the Scottish equivalent of Stamp Duty Land Tax (SDLT) and was introduced on 1 April 2015. The amount of tax payable depends on the type and value of the property and the type of buyer.
LBTT Rates for Residential Property
LBTT applies to residential property purchases above £145,000 (or £175,000 for first-time buyers). The tax is calculated on a sliding scale, meaning you pay different rates on different portions of the purchase price:
| Property Value | LBTT Rate |
|---|---|
| £0 – £145,000 | 0% |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| £750,001 + | 12% |
LBTT Rates for First Time Buyers
First time buyers get rates relief on purchases up to £175,000. If you are buying jointly, you must both be first time buyers to qualify.
| Property Value | LBTT Rate |
|---|---|
| £0 – £175,000 | 0% |
| £175,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| £750,001 + | 12% |
LBTT Rates when Purchasing a Second Property
Where the purchaser (or spouse/civil partner/cohabitee when buying jointly) owns all or part of another residential property anywhere in the world, Additional Dwelling Supplement (ADS) tax of 8% of the purchase price will be payable, unless the purchaser is replacing their principal dwelling.
| Property Value | LBTT Rate |
|---|---|
| £0 – £145,000 | 8% |
| £145,001 – £250,000 | 10% |
| £250,001 – £325,000 | 13% |
| £325,001 – £750,000 | 18% |
| £750,001 + | 20% |