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.
LBTT calculator
Use our calculator to find out how much Scottish stamp duty you'll pay when buying a home.
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 from April 2021.
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% |
| More than £750,000 | 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:
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% |
| More than £750,000 | 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 6% on top of the standard LBTT rates.
Table: buy-to-let LBTT rates
| Portion of property price | Rate |
|---|---|
| Properties worth less than £40,000 | 0% |
| £0-£145,000 | 6% |
| £145,001-£250,000 | 8% |
| £250,001-£325,000 | 11% |
| £325,001-£750,000 | 16% |
| More than £750,000 | 18% |
- Find out more: buy-to-let advice guides
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
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.
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