LBTT Calculator (Scotland)
About Land and Buildings Transaction Tax (LBTT)
Land and Buildings Transaction Tax (LBTT) is the tax payable when you buy residential or commercial property or land in Scotland. It replaced UK Stamp Duty Land Tax (SDLT) for Scottish transactions from 1 April 2015.
LBTT is calculated on a progressive basis, meaning each portion of the purchase price is taxed at a different rate within set thresholds. If you are purchasing an additional property, such as a second home or a buy-to-let investment, an extra charge known as the Additional Dwelling Supplement (ADS) applies.
Current LBTT Rates for Residential Property
| Price Bracket | Rate Applied |
|---|---|
| Up to £145,000* | 0% |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| Over £750,000 | 12% |
*For first-time buyers, the nil rate band increases to £175,000.
Additional Dwelling Supplement (ADS)
If you buy an additional residential property, you may need to pay an extra 4% on the total purchase price. This applies even if the main LBTT is zero.
How LBTT is Calculated
LBTT is worked out by applying each rate to the relevant portion of the purchase price. For example:
- The first £145,000 (or £175,000 for first-time buyers) is tax-free.
- The next slice up to £250,000 is charged at 2%.
- Any portion between £250,001 and £325,000 is charged at 5%.
- Any amount above that continues through the higher bands.
Your estimated LBTT liability will depend on:
- The total purchase price
- Whether you are a first-time buyer
- Whether you already own another property
