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LBTT: stamp duty in Scotland

Use our calculator to work out how much LBTT - Scottish stamp duty - you'll need to pay when buying a home, second property or buy-to-let investment.

In this article
LBTT calculator What is Land and Buildings Transaction Tax (LBTT)? LBTT for first-time buyers LBTT rates for home movers (standard rates)
LBTT on buy-to-let and second/holiday homes Do I need to pay LBTT? How and when to pay LBTT Get personalised mortgage advice

LBTT calculator

Use our calculator to find out how much Scottish stamp duty you'll pay.

What is Land and Buildings Transaction Tax (LBTT)?

Land and Buildings Transaction Tax (LBTT) is a tax that you usually have to pay when buying a property in Scotland.

It's a tiered tax, meaning you pay different rates on different portions of the property price.

Until 2015 those purchasing properties in Scotland had to pay stamp duty, but this is devolved and was replaced with LBTT in 2015.

LBTT for first-time buyers

The tax-free limit for properties bought by first-time buyers is £175,000, meaning that up to 80% of first-time buyers will pay no stamp duty at all.

If your first home is more expensive than this threshold, you'll still benefit from the relief on the first £175,000 of the price, meaning you could save up to £600. 

The illustration below shows the LBTT rates for first-time buyers.

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You can use our calculator to see how much stamp duty you'll need to pay.

Table: first-time buyer LBTT rates

Portion of property price 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 for home movers (standard rates)

If you currently own a property which you're selling in order to move to a new one (or have ever owned a property before), then assuming the property you're buying will be the only one you own at the time, you'll pay the standard LBTT rates. 

LBTT will be charged if the property costs over £145,000. The tax is tiered, which means you'll pay different percentage rates on different 'portions' of the property price:

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Table: standard LBTT rates

Portion of property price Rate
£0-£145,000 0%
£145,001-£250,000 2%
£250,001-£325,000 5%
£325,001-£750,000 10%
£750,001+ 12%

LBTT on buy-to-let and second/holiday homes

When you purchase a second home or buy-to-let property in Scotland, you have to pay an 'additional dwelling supplement'.

This means that you'll be charged an extra 4% on top of the standard LBTT rates (this used to be 3% but went up in January 2019).

Table: buy-to-let LBTT rates

Portion of property price Rate
Properties worth less than £40,000 0%
£0-£145,000 3%
£145,001-£250,000 5%
£250,001-£325,000 8%
£325,001-£750,000 13%
£750,001+ 15%

 

 

Rates also apply to second homes and holiday homes. If total property price is over £40,000 but less than £145,000, 3% tax will be charged on the full property price.

Do I need to pay LBTT?

LBTT is usually payable whenever you make a 'land transaction' - i.e. whenever you buy property, or interest in property.

However, there are some situations when no LBTT is payable, including:

  • transactions where there is no consideration (ie no payment was made)
  • residential leases
  • property transferred in relation to a will or intestacy 
  • property transferred after divorce, separation or the end of a civil partnership
  • purchases of properties costing up to £145,000 (if it will be your only property and you're not a first-time buyer)
  • purchases of properties costing up to £175,000 (if you're a first-time buyer)

How and when to pay LBTT

To pay your LBTT, you'll need to make an LBTT return to Revenue Scotland.

The return must be lodged within 30 days of the sale being completed. You need to pay the amount due at the same time you file the return.

If you don't pay on time, you may face a penalty, and the purchase will not be registered until payment has been made.

Returns can be filed online, or by paper via post.

Get personalised mortgage advice

Whether you're looking to buy your first home, move house or invest in a buy-to-let, it pays to take advice from a whole-of-market mortgage broker on the best deal for your circumstances.

For a no-obligation consultation with a friendly expert, you can call Which? Mortgage Advisers on 0800 197 8461 or fill out the form below for a call back.

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