LBTT Rates

LBTT rates & calculations

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Stamp Duty News

Stamp duty for first time buyers has been abolished for most purchasers.

Stamp duty for buy to let property has increased substantially from April 2016.

Stamp duty for second homes also attracts a 3 percent surcharge from April. Mobile homes, caravans and houseboats are exempt.

Stamp duty refunds are available for home movers replacing their main residence. The original home must be sold within 3 years.

Stamp duty calculations are different in England and Northern Ireland to LBTT calculations in Scotland and LTT calculations in Wales.

LBTT Rates in Scotland

LBTT is payable when you buy or lease a building or land over a certain price.

LBTT rates

Along with the rest of the UK, buyers of residential property in Scotland pay tax on amounts between bands, not on the full purchase price. Different LBTT rates are set for each band with the higher bands having the highest LBTT rates.

There are different LBTT rates for residential and non residential property transactions.

Residential LBTT rates

A dwelling is regarded as being "residential" if it complies with certain criteria. In most cases the definition of a residential dwelling applies to:

  1. Any building that is used or is suitable for use as a dwelling, or is in the process of being constructed or adapted for such use.
  2. Land that is or forms part of the garden or grounds of a dwelling (including any building or other structure on such land).
  3. An interest in or right over land that subsists for the benefit of a building within a dwelling, or of land within a dwelling.
Standard and additional dwelling LBTT rates

Freehold residential LBTT rates are shown in the table below. The table shows both standard LBTT rates, and the higher LBTT rates which include the Additional Dwelling Supplement (ADS).

Tax Band Standard Rate ADS Rate
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%
* 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.

An additional dwelling supplement (ADS) is applied to all standard rate bands above an initial threshold of £40,000. Additional dwelling types include buy to let investments and second homes. From 25th January 2019 ADS has increased from 3% to 4%.

LBTT rates for first time buyers

The Scottish Goverment introduced LBTT first time buyers relief from June 2018, the new thresholds are shown in the table below.

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 have introduced first time buyer relief from June 2018.

By increasing the initial LBTT threshold for first time buyers to £175k, the Scottish Government predict the majority of first time buyer transactions will attract no tax.

First time purchases above £175k will also benefit from the first time buyers relief on the portion below the £175k threshold.

Leases of residential property

Leases of residential property are exempt from LBTT and no tax will be payable. This means LBTT does not apply to rents payable under a lease for residential property.

How much LBTT will be payable?

The LBTT calculators below indicate how much tax will be payable for both single and additional freehold residential property purchases in Scotland. LBTT calculations are also now available for first time buyers.

Single Property


Purchase Price

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Calculate


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Additional Property


Purchase Price

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Calculate


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First Time Buyer


Purchase Price

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Calculate


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Non residential LBTT rates

Specific LBTT rates and bands apply to transactions relating to non residential property. The non residential LBTT rates are different to the residential LBTT rates.

Non residential property refers to any property that is not defined as being residential in nature. Examples of non residential property types include childrens homes, halls of residence, care homes, hospitals, hospices, prisons and hotels.

The table below shows non-residential LBTT rates and bands for transactions on or after 25 January 2019.

Tax Band LBTT Rate
Up to £150k 0%
£150k to £250k 1%
Above £250k 5%
Leases of non residential property

For chargeable leases, the following LBTT rates and bands apply to the Net Present Value (NPV) of the rent payable under the lease:

NPV of rent payable LBTT Rate
Up to £150k 0%
Above £150k 1%
The LBTT calculator is designed to give you an idea of your LBTT liability when buying a freehold residential property in Scotland. LBTT calculations are rounded down to the nearest pound. The information on this page should be used for guidance only.
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