What is Land and Buildings Transaction Tax (LBTT)?

For people buying a home, land or commercial property in Scotland.

Applies to: Scotland Last checked against official sources: 6 October 2026

Land and Buildings Transaction Tax (LBTT) is the tax you pay when you buy property or land in Scotland. It replaced Stamp Duty Land Tax in Scotland from 1 April 2015.

On a home, there is no LBTT on the first £145,000.
Rates on the part above that are 2%, 5%, 10% and 12%.
First-time buyers pay nothing on the first £175,000, saving up to £600.
Buying an extra home usually adds the Additional Dwelling Supplement of 8%.
The return must be made within 30 days of the day after the effective date.

Different in Scotland, Wales or Northern Ireland

Rules may be different in:

Wales: Check gov.wales for Wales
Northern Ireland: Check nidirect for Northern Ireland

Key facts

Scotland only
Nil rate up to £145,000
First-time buyers: £175,000
Second homes: extra 8% ADS

What LBTT is

Land and Buildings Transaction Tax (LBTT) is a tax on buying land and buildings in Scotland. It covers homes, commercial property and commercial leases. It is run by Revenue Scotland, not HMRC.

LBTT replaced Stamp Duty Land Tax (SDLT) in Scotland on 1 April 2015. If you buy in England or Northern Ireland, you pay SDLT instead. In Wales, you pay Land Transaction Tax.

Who pays it

The buyer pays LBTT. The return must be sent within 30 days, starting with the day after the effective date of the transaction.

You must send a return for most home purchases of £40,000 or more, even if no tax is due.

Residential rates in 2026

These rates have applied since 1 April 2021 and are still in force for 2026/27. You pay each rate only on the part of the price in that band.

Part of the price	Rate
Up to £145,000	0%
£145,001 to £250,000	2%
£250,001 to £325,000	5%
£325,001 to £750,000	10%
Over £750,000	12%

First-time buyer relief

If you are a first-time buyer, the 0% band goes up to £175,000. This saves you up to £600.

Additional Dwelling Supplement (ADS)

If you buy an extra home, you usually pay the Additional Dwelling Supplement on top of LBTT. For transactions entered into on or after 5 December 2024, ADS is 8% of the whole price.

Worked examples

Example 1: home buyer, £300,000

First £145,000 at 0%: £0
Next £105,000 at 2%: £2,100
Last £50,000 at 5%: £2,500
Total LBTT: £4,600

Example 2: first-time buyer, £300,000

First £175,000 at 0%: £0
Next £75,000 at 2%: £1,500
Last £50,000 at 5%: £2,500
Total LBTT: £4,000, which is £600 less.

Example 3: additional home, £200,000

LBTT: £55,000 at 2% = £1,100
ADS: 8% of £200,000 = £16,000
Total: £17,100

Things to know

Commercial property and leases have their own rates. Revenue Scotland has separate guidance and calculators.
Revenue Scotland's online calculator works out the tax for you.
Penalties can apply if a return or payment is late.

Related guides

Where these figures come from

Get it done

This takes you to the official service, which is free to use.

Calculate your LBTT

Common questions

Is LBTT the same as stamp duty?

It does the same job. LBTT replaced Stamp Duty Land Tax for property in Scotland from 1 April 2015.

Do I need to send an LBTT return on a cheap property?

For most residential purchases you must send a return if the price is £40,000 or more.

Official sources

1.Land and Buildings Transaction Tax (Revenue Scotland)revenue.scot/taxes/land-buildings-transaction-tax
2.LBTT: residential property rates and reliefs (Revenue Scotland)revenue.scot/taxes/land-buildings-transaction-tax/residential-property
3.LBTT updates (Revenue Scotland)revenue.scot/taxes/land-buildings-transaction-tax/lbtt-updates
4.Land and Buildings Transaction Tax (Scotland) Act 2013, section 29www.legislation.gov.uk/asp/2013/11/section/29

Checked against GOV.UK on 6 October 2026

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