Stamp Duty in Scotland is now called Land and Buildings Transaction Tax (LBTT).
Scotland LBTT
The Scottish Land and Buildings Transaction Tax system is still based on the existing SDLT scheme. The LBTT thresholds have been introduced with clear boundaries between the different bands and the rates increase in line with the property price.
Scotland LBTT rates
From April 2015 the New LBTT rates were introduced and under this new system buyers will pay tax on amounts between bands, not on the full purchase price.
Taxation rates are different in the rest of UK.
LBTT current rates
Up to date LBBT rates are listed below:
| Tax Band | Normal Rate | Additional Dwelling * |
|---|---|---|
| less than £145k | 0% | 4%** |
| £145k to £250k | 2% | 6% |
| £250k to £325k | 5% | 9% |
| £325k to £750k | 10% | 14% |
| rest over £750k | 12% | 16% |
|
* Percentage figures show LBTT and ADS rates combined. ADS is calculated in addition to LBTT and is applied at 4% to the total purchase price above £40k. ** An additional dwelling purchased for less than £40k will attract 0% tax. For purchases from £40k to £145k the rate will be 4% on the full purchase price. |
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If the single property purchase is within £145,000 there is no tax to pay. Then the band between £145,000 and £250,000 it is 2%, it will be 5% on the portion between £250,000 and £325,000, within the next band up to £750,000 is 10% and then 12% over this.
Additional homes and LBTT
In April 2016 an ‘Additional Dwelling Supplement’ was introduced. This now applies to all transaction that involves the purchase of a buy to let or a second home (additional property)
The surcharge applies to the full purchase amount above the initial threshold of £40,000 which is in line with the rest of the UK.
The Additional Dwelling Supplement has been increased from 3% to 4% which took effect from the 25th January 2019.
First-time buyers and LBTT
Below in a table that shows thresholds of the LBTT first-time buyers relief that came in from June 2018.
| Tax Band | First Time Buyer Rate |
|---|---|
| less than £175k | 0% |
| £175k to £250k | 2% |
| £250k to £325k | 5% |
| £325k to £750k | 10% |
| rest over £750k | 12% |
| The Scottish Government introduced first time buyer relief from June 2018. | |
This increase was initiated for first-time buyers so that the majority of first-time buyers would not attract any tax.
If you are a first-time buyer and you purchase a property over £175,000 you will benefit from the first-time buyers relief on the portion that is below the £175,000 threshold.
How much LBTT will I need to pay?
Below are our LBTT calculators, they will show you an indication of how much tax is payable on both single and additional freehold residential properties in Scotland.
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