Stamp Duty Rates in Scotland.
Stamp Duty in Scotland
The Scottish LBTT system is broadly based on the existing SDLT scheme. LBTT rates increase in line with property price and LBTT rate thresholds have been introduced with clear demarcation between the different bands.
LBTT rates in Scotland
New LBTT rates were introduced from April 2015. Under the new LBTT system buyers pay tax on amounts between bands, not on the full purchase price of a property.
Taxation rates in the rest of the UK are different to the LBTT rates in Scotland.
What are the current LBTT Rates?
The current Land and Buildings Transaction Tax rates are shown in the table below:
* An additionl property purchased for less than £40k will attract 0% tax. For purchases from £40k to £145k the rate will be 3% on full purchase price.
less than £145k
£145k to £250k
£250k to £325k
£325k to £750k
rest over £750k
For a single property purchase, no tax will be paid on the first £145,000. Between £145,000 and £250,000 buyers will pay 2% within this band, 5% on the portion between £250,000 and £325,000, 10% within the next band up to £750,000 and 12% over that.
LBTT for buy to let and second homes
From April 2016 a 3% LBTT surcharge applies to all transactions involing the purchase of an additional property. Additional property types include buy to let investments and second homes. In line with the rest of the UK, the surcharge applies to the full purchase price above an initial threshold of £40,000.
LBTT for first time buyers
The Scottish Goverment introduced LBTT first time buyers relief from June 2018, the new threholds are shown in the table below.
|Band||First Time Buyer Rate|
|The Scottish Government have introduced first time buyer relief from June 2018|
|less than £175k||0%|
|£175k to £250k||2%|
|£250k to £325k||5%|
|£325k to £750k||10%|
|rest over £750k||12%|
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.
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 following the introduction of LBTT first time buyer relief from June 2018.