First-time buyers in Scotland (2026): LBTT relief and what it saves
First-time buyers in Scotland pay no Land and Buildings Transaction Tax on the first £175,000, instead of £145,000, at any price. The relief saves up to £600: a first-time buyer pays £1,500 on a £250,000 home, against £2,100 for other buyers who own no home. England is cheaper for first-time buyers, even above £500,000 where its relief stops.
Key facts
- The nil band rises from £145,000 to £175,000 for first-time buyers.
- There is no price cap: the relief applies to a home at any price.
- Every buyer must never have owned a home anywhere in the world, and must live in it as their main home.
- The relief is claimed on the LBTT return, usually by the solicitor.
How does first-time buyer relief work in Scotland?
It raises the nil band. A first-time buyer pays nothing on the first £175,000, instead of £145,000, then the normal rates (Schedule 4A to the 2013 Act):
LBTT, first-time buyer relief
Charged in bands on the price: each slice is taxed at its own rate, rounded down to the whole unit.
| Slice of the value | Rate on that slice |
|---|---|
| up to £175,000 | 0% |
| £175,000 to £250,000 | 2% |
| £250,000 to £325,000 | 5% |
| £325,000 to £750,000 | 10% |
| over £750,000 | 12% |
Applies when the buyer is a first-time buyer; the buyer owns no other home; it is for your main home.
The nil band rises from £145,000 to £175,000, worth up to £600, at any price. Every buyer must never have owned a home anywhere in the world, and the home must be their only or main residence. Claimed on the LBTT return.
There is no price cap, unlike England’s relief.
Who qualifies?
Revenue Scotland’s guidance (LBTT3048) sets the conditions:
- every buyer has never owned a dwelling anywhere in the world, including one inherited or gifted;
- the buyer intends to live in the home as their only or main residence;
- the Additional Dwelling Supplement does not apply to the purchase.
Buying with someone who has owned a home means the relief is lost for both. The relief is claimed on the LBTT return.
How much does a first-time buyer pay at different prices?
| Price | Taxes | Fees, typical | Total on top | Estimate range | Share of price |
|---|---|---|---|---|---|
| £145,000 | £0 | £1,360 | £1,360 | £1,160 to £3,260 | 0.94% |
| £175,000 | £0 | £1,500 | £1,500 | £1,300 to £3,400 | 0.86% |
| £200,000 | £500 | £1,500 | £2,000 | £1,800 to £3,900 | 1.00% |
| £250,000 | £1,500 | £1,630 | £3,130 | £2,930 to £5,030 | 1.25% |
| £300,000 | £4,000 | £1,630 | £5,630 | £5,430 to £7,530 | 1.88% |
| £400,000 | £12,750 | £1,760 | £14,510 | £14,310 to £16,410 | 3.63% |
| £500,000 | £22,750 | £1,760 | £24,510 | £24,310 to £26,410 | 4.90% |
| Price | First-time buyer | Other buyer who owns no home |
|---|---|---|
| £175,000 | £0 | £600 |
| £250,000 | £1,500 | £2,100 |
| £300,000 | £4,000 | £4,600 |
Is first-time buyer relief bigger in Scotland or England?
England’s relief is larger: nothing is due up to £300,000, but only on homes up to £500,000. Above that, England’s lower bands still keep it cheaper:
| Price | Scotland (LBTT) | England (SDLT) |
|---|---|---|
| £250,000 | £1,500 | £0 |
| £300,000 | £4,000 | £0 |
| £450,000 | £17,750 | £7,500 |
| £600,000 | £32,750 | £20,000 |
Wales has no first-time buyer relief at all (first-time buyers in Wales).
What this guide does not cover
- Shared equity and other assisted purchase schemes.
- Mortgage, survey and moving costs.
Questions people ask
Do first-time buyers pay LBTT in Scotland?
Not on a home up to £175,000. Above that they pay the normal rates on the part above £175,000: £1,500 on a £250,000 home and £4,000 on a £300,000 home.
How much does first-time buyer relief save in Scotland?
Up to £600, the 2% band between £145,000 and £175,000. Any first-time buyer of a home above £175,000 saves the full £600.
Who counts as a first-time buyer for LBTT?
Every buyer must never have owned a dwelling anywhere in the world, including one inherited or given to them, and must intend to live in the new home as their only or main residence.
Is first-time buyer relief bigger in Scotland or England?
England's is bigger: nothing is due up to £300,000 there, against £175,000 in Scotland. England's relief stops for homes above £500,000 while Scotland's applies at any price, but England's lower bands still make it cheaper above that.
Sources
- LBTT3048: first-time buyer reliefRevenue Scotland
- Stamp Duty Land Tax: residential property rates (first-time buyer relief in England)GOV.UK (HM Revenue and Customs)
Behind the figures
Every amount on this page is worked out by the engine from rule files that cite these pages.
- Which?: Conveyancing, what it is and what it costs (29 May 2026)Secondary source
- The Land Registration Fee Order 2024 (SI 2024/931)Official source
- Revenue Scotland: LBTT updates (ADS 8% from 5 December 2024)Official source