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LBTT: Stamp duty in Scotland

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

In this article
LBTT calculator LBTT for first-time buyers LBTT rates for home movers LBTT on buy-to-let and second homes
Do I need to pay LBTT? How to pay LBTT

If you're buying a property in Scotland, you'll usually have to pay Land and Buildings Transaction Tax (LBTT). This is a tiered system, where you pay different rates of tax on different portions of the property price.

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LBTT calculator

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

Note that since 30 June 2018 different rates apply for first-time buyers.

 

 

LBTT for first-time buyers

Previously, first-time buyers were subject to the same LBTT rates as everyone else (see 'LBTT rates for home movers', below).

But since 30 June 2018, the tax-free limit for properties bought by first-time buyers has been raised to £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. 

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

See our table below for the updated rates.

Land and Buildings Transaction Tax rates for first-time buyers
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

If you buy a home for over £145,000 as a primary residence (ie the home you'll be living in for the majority of the time), you'll need to pay LBTT. The amount you have to pay will depend on the overall purchase price.

LBTT is tiered, which means you'll pay different percentage rates on different 'portions' of the property price, as outlined in the table below:

Land and Buildings Transaction Tax rates for home movers
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 homes

 

Properties bought as buy-to-let investments, second homes or holiday homes will incur an additional 3% in LBTT if they cost over £40,000.

This 3% surcharge is added to the standard rates paid by other homebuyers (as above).

The rates (combining the standard rates and the surcharge) are as follows:

Buy-to-let and second home 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%

 

 

More info

Rates also apply to second homes and holiday homes. There is no tax to pay if the total property price is less than £40,000. If total property price is over £40,000 but less than £145,000, the rate of tax payable is 3%. For properties worth more than £145,000, tax at 3% is charged on the first £145.000 is subject to 3% tax.

 

Do I need to pay LBTT?

 

LBTT is payable whenever you make a land transaction - meaning you buy property, or interest in property.

There are some exceptions 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

From June 2018, first-time buyers will be exempt from paying any LBTT on the first £175,000.

How 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 sale will not be registered until payment has been made.

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

Correct as of date of publication.

 
 

 

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