Land and Buildings Transaction Tax (2026): LBTT rates, bands and the return
Land and Buildings Transaction Tax is the purchase tax in Scotland. A buyer who owns no other home pays nothing on the first £145,000, then 2%, 5%, 10% and 12% on the slices above: £2,100 on a £250,000 home and £23,350 on a £500,000 home. First-time buyers get a higher nil band, and a buyer who will own another home adds the 8% Additional Dwelling Supplement.
Key facts
- LBTT replaced Stamp Duty Land Tax in Scotland on 1 April 2015, run by Revenue Scotland.
- Bands: 0% to £145,000, 2% to £250,000, 5% to £325,000, 10% to £750,000, 12% above.
- Each rate applies only to the slice of the price inside its band.
- No surcharge for buyers living outside the UK.
- Return and payment within 30 days of the day after the effective date, usually settlement.
What is LBTT?
Land and Buildings Transaction Tax is the tax a buyer pays on buying land or property in Scotland, residential or commercial. It replaced Stamp Duty Land Tax there on 1 April 2015 and is run by Revenue Scotland, not HMRC. This guide covers homes.
What are the LBTT rates and bands in 2026?
For a buyer who will own no other home, LBTT is charged at these residential rates, unchanged by the Scottish Budget 2026-27:
Land and Buildings Transaction Tax
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 £145,000 | 0% |
| £145,000 to £250,000 | 2% |
| £250,000 to £325,000 | 5% |
| £325,000 to £750,000 | 10% |
| over £750,000 | 12% |
Applies when except when the buyer is a first-time buyer, the buyer owns no other home and it is for your main home.
How is LBTT calculated?
In slices: each rate applies only to the part of the price inside its band, and the slices are added up. A £300,000 home:
- the part up to £145,000 at 0%;
- the part up to £250,000 at 2%;
- the rest, up to the £300,000 price, at 5%.
That makes £4,600. Revenue Scotland publishes worked examples in its guidance (LBTT4010).
How much LBTT do you 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 | £600 | £1,500 | £2,100 | £1,900 to £4,000 | 1.20% |
| £200,000 | £1,100 | £1,500 | £2,600 | £2,400 to £4,500 | 1.30% |
| £250,000 | £2,100 | £1,630 | £3,730 | £3,530 to £5,630 | 1.49% |
| £300,000 | £4,600 | £1,630 | £6,230 | £6,030 to £8,130 | 2.08% |
| £325,000 | £5,850 | £1,760 | £7,610 | £7,410 to £9,510 | 2.34% |
| £400,000 | £13,350 | £1,760 | £15,110 | £14,910 to £17,010 | 3.78% |
| £500,000 | £23,350 | £1,760 | £25,110 | £24,910 to £27,010 | 5.02% |
| £750,000 | £48,350 | £2,030 | £50,380 | £50,180 to £52,280 | 6.72% |
The totals add the solicitor and the Registers of Scotland fee; the taxes column is the LBTT.
What changes for first-time buyers and second homes?
| Buyer, £300,000 home | LBTT | ADS | Guide |
|---|---|---|---|
| Owns no other home | £4,600 | ||
| First-time buyer | £4,000 | First-time buyers | |
| Already owns a home | £4,600 | £24,000 | Additional Dwelling Supplement |
The Additional Dwelling Supplement is 8% of the whole price, on top of LBTT, on purchases from £40,000.
Is LBTT the same as stamp duty?
It does the same job. Scotland took over the tax on 1 April 2015, when LBTT replaced Stamp Duty Land Tax there. The differences that change the bill:
| Scotland (LBTT) | England (SDLT) | |
|---|---|---|
| Nothing due up to | £145,000 | £125,000 |
| First-time buyers | Nothing up to £175,000, at any price | Nothing up to £300,000, on homes up to £500,000 |
| Buyers who own another home | 8% of the price on top | 5% of the price on top |
| Buyers who live abroad | No surcharge | 2% on top |
| Who collects it | Revenue Scotland | HM Revenue and Customs |
| Return due | 30 days | 14 days |
Which tax applies depends on where the property is, not where the buyer lives. Scotland or England compares the bills.
What is the LBTT return deadline, and who files and pays it?
- Deadline: the return and the tax are due within 30 days of the day after the effective date, which is usually settlement (Revenue Scotland guidance LBTT4003).
- Who files: the buyer’s solicitor, through Revenue Scotland’s online system, usually paying from the buyer’s funds.
- Nothing to pay: a return is still needed for most purchases of £40,000 or more.
- Late: late filing penalties and interest apply to a late return or late payment.
Are there exemptions from LBTT, or refunds?
- Gifts of a dwelling are exempt from LBTT, and so pay no ADS either (Revenue Scotland’s ADS exemptions guidance).
- First-time buyer relief is claimed on the return; see first-time buyers.
- Refunds: the common one is the ADS refund, when the old main home sells within 36 months of buying the new one; see the Additional Dwelling Supplement.
What this guide does not cover
- Buying several homes at once (multiple dwellings relief), linked transactions, leases and non-residential property.
- Companies, which always pay ADS.
- Group, charity and other reliefs.
Questions people ask
How much is LBTT on a £300,000 house?
£4,600 for a buyer who owns no other home: nothing on the first £145,000, 2% up to £250,000, and 5% on the rest. A first-time buyer pays £4,000; a buyer who already owns a home adds 8% of the price.
What is the LBTT threshold?
£145,000 for most buyers and £175,000 for first-time buyers. Below that no LBTT is due, though a return is still needed for most purchases of £40,000 or more.
Is LBTT the same as stamp duty?
It does the same job, but it is a separate Scottish tax with its own bands, run by Revenue Scotland since 1 April 2015. HMRC's stamp duty applies in England and Northern Ireland.
Who pays LBTT and when?
The buyer. The solicitor usually files the return with Revenue Scotland and pays the tax within 30 days of the day after the effective date, which is usually the date of settlement.
Do non-residents pay more LBTT?
No. Scotland has no non-resident surcharge, unlike England and Northern Ireland. A buyer who owns a home anywhere else pays the Additional Dwelling Supplement, whatever their residence.
Sources
- Residential property: LBTT rates and examplesRevenue Scotland
- LBTT4010: residential transactions, worked examplesRevenue Scotland
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