Land & Buildings Transaction Tax (LBTT)
What is LBTT?
Land & Buildings Transaction Tax (LBTT) is a tax applied to residential and commercial land and buildings transactions in Scotland. It replaced Stamp Duty Land Tax on April 1, 2015. LBTT is calculated based on the purchase price of the property, with different rates applied to portions of the price that fall within specified bands.
LBTT bands
| Purchase Price Range | LBTT Rate |
|---|---|
| £0 to £145,000 | No tax |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Over £750,000 | 12% |
First-time buyers and LBTT
A relief for first-time buyers is available, which increases the residential nil rate band of LBTT to £175,000.
From 1 April 2021, the availability of the relief will result in a reduction in tax of up to £600 for qualifying first-time buyers.
For more information including first-time buyer FAQs around LBTT, visit the Revenue Scotland website.
The calculation of LBTT
If you are buying a property at £260,000 you will pay tax as follows:
- On the first £145,000 of your purchase you will pay 0% tax = £0
- On the proportion between £145,001 and £250,000 you will pay tax at a rate of 2% = £2100
- On the proportion between £250,001 and £260,000 you will pay tax at a rate of 5% = £500
The total tax bill = £2600
It can be quite confusing working out the tax bill using the various different bands, so we’ve developed a handy calculator to help! Simply enter the amount that you are purchasing at and we’ll quickly show you the amount of LBTT you’ll likely be paying.
LBTT Calculator
