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.
LBTT is payable when you buy or lease a building or land over a certain price.
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.
A dwelling is regarded as being "residential" if it complies with certain criteria. In most cases the definition of a residential dwelling applies to:
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||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.
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%.
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 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.
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.
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%|
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%|
Stamp duty calculations with new stamp duty thresholds. One ckick SDLT Calculations!
Following Changes in 2018, Land Transaction Tax (LTT) has replaced Stamp Duty in Wales.