LBTT Calculator Scotland 2025

First-time buyers benefit from an extended nil rate threshold of £175,000 (compared to £145,000 for standard purchases). This saves up to £600 in LBTT. To qualify, you must never have owned residential property anywhere in the world, and you must be buying the property as your main residence in Scotland.

The ADS applies when you buy a residential property in Scotland and you already own one or more residential properties worldwide. Unlike LBTT which is calculated in bands, the ADS is 6% of the entire purchase price and applies in addition to the standard LBTT. The ADS threshold is £40,000 - transactions below this are exempt.

Key insight: LBTT is cheaper than SDLT for properties under approximately £330,000, but more expensive above this level. The 10% band starting at £325,001 (vs England's 5% band up to £925,000) means LBTT becomes significantly more expensive at higher price points. This is an important consideration for buyers looking at properties in the £400,000-£750,000 range.

What is LBTT and who pays it?

Land and Buildings Transaction Tax (LBTT) is Scotland's property purchase tax, replacing stamp duty on 1 April 2015. It applies to residential and non-residential property purchases and leases in Scotland. The buyer is responsible for filing and paying LBTT within 30 days of the effective date of the transaction. Revenue Scotland (not HMRC) administers LBTT. For residential purchases above £145,000, LBTT is calculated using progressive rate bands similar to income tax - you only pay each rate on the portion of the price that falls within that band.

What are the LBTT rates for 2025/26?

The residential LBTT rates for 2025/26 are: 0% on the first £145,000; 2% on £145,001 to £250,000; 5% on £250,001 to £325,000; 10% on £325,001 to £750,000; 12% on any amount above £750,000. For first-time buyers, the nil rate threshold is extended to £175,000, saving up to £600. The Additional Dwelling Supplement (ADS) of 6% applies on the full purchase price for second homes and buy-to-let properties. Non-residential rates are: 0% up to £150,000; 1% on £150,001 to £250,000; 5% above £250,000.

How much LBTT would I pay on a £300,000 house in Scotland?

For a standard residential purchase of £300,000 in Scotland (2025/26): The first £145,000 is taxed at 0% = £0. The portion from £145,001 to £250,000 (£105,000) is taxed at 2% = £2,100. The portion from £250,001 to £300,000 (£50,000) is taxed at 5% = £2,500. Total LBTT = £4,600. If you are a first-time buyer, the nil rate threshold is £175,000, reducing your LBTT to £4,000. As a comparison, the same property in England attracts £5,000 SDLT for a home mover, so Scotland is slightly cheaper at this price point.

What is the Additional Dwelling Supplement (ADS)?

The ADS is a 6% surcharge on the entire purchase price of any residential property bought in Scotland when you already own one or more residential properties anywhere in the world. Unlike the standard LBTT bands, the ADS applies to the whole price - not just the excess above a threshold. The ADS exemption threshold is £40,000, so purchases below this are not affected. If you sell your previous main residence within 18 months of buying the new property, you can reclaim the ADS from Revenue Scotland by submitting an amendment to your LBTT return.

How does LBTT compare to SDLT in England?

LBTT and SDLT have significant differences in thresholds, rates, and administration. LBTT is generally cheaper for properties below approximately £330,000, but more expensive above this level due to the 10% band starting at £325,001 (England's comparable 10% band does not start until £925,001). Scotland administers LBTT via Revenue Scotland rather than HMRC, and has a 30-day filing deadline (vs 14 days for SDLT). The FTB nil rate threshold in Scotland is £175,000 (vs £300,000 in England). The ADS second-home surcharge is 6% of the full price (vs England's 5% additional surcharge on each band).

When must I file and pay LBTT?

You must submit an LBTT return and pay any tax due to Revenue Scotland within 30 days of the effective date (usually the date of completion). Your solicitor will typically handle this on your behalf. Failure to file on time incurs a £100 penalty rising to £1,000 after 3 months, plus interest on any unpaid tax. Importantly, an LBTT return must be filed even if no tax is due - for example, a first-time buyer purchasing at £160,000 still needs to submit a nil return. Revenue Scotland accepts online filings through its SETS (Scottish Electronic Tax System) portal.

Does LBTT apply to leases in Scotland?

Yes, LBTT applies to commercial leases in Scotland. The LBTT on leases is calculated on the Net Present Value (NPV) of the rental payments over the lease term: 0% on NPV up to £150,000; 1% on the NPV above £150,000. Any premium paid for a lease is subject to the non-residential purchase rates. Tenants with notifiable leases must also submit three-yearly LBTT lease reviews to Revenue Scotland for the duration of the lease, which is a unique feature of LBTT with no direct equivalent in the English SDLT system.

What are linked transactions for LBTT purposes?

Linked transactions are two or more property transactions between the same buyer and seller (or connected parties) that form part of a single arrangement. When transactions are linked, LBTT is calculated on the aggregate purchase price of all linked properties combined, not on each separately. This can push the total value into higher rate bands. Revenue Scotland takes a broad view of what constitutes linked transactions and can investigate arrangements designed to artificially reduce LBTT by splitting what is essentially a single transaction into multiple smaller ones.