Land and Buildings Transaction Tax applies to every property purchase in Scotland. Enter your price, choose your situation, and see what you owe — including first-time buyer relief and the additional dwelling supplement.
Land and Buildings Transaction Tax is the Scottish property purchase tax, introduced in April 2015 to replace Stamp Duty Land Tax (SDLT) in Scotland. When you buy a property in Scotland, you pay LBTT to Revenue Scotland rather than HMRC. The rates and bands are set by the Scottish Parliament and are different from those in England and Wales.
Like income tax, LBTT is progressive. You only pay each rate on the portion of the purchase price that falls within that band, not on the full price. Buying at £200,000 means you pay 0% on the first £145,000 and 2% on the remaining £55,000, not 2% on the whole £200,000.
First-time buyers in Scotland can claim relief that raises the zero-rate threshold from £145,000 to £175,000. This saves up to £600 on a purchase at or above £175,000.
To qualify, every buyer in the transaction must be purchasing their first residential property. You cannot have previously owned a home anywhere in the world. The relief is claimed when your solicitor submits the LBTT return.
The Additional Dwelling Supplement (ADS) adds 8% on the full purchase price when you are buying an additional residential property in Scotland while retaining an existing one. Unlike LBTT, ADS is a flat charge on the entire purchase price, not just the amount above a threshold.
On a £250,000 purchase, ADS adds £20,000 on top of the standard LBTT. It applies to buy-to-let, second homes, and holiday properties.
If you buy a new main residence before selling your previous one, ADS is due at completion. However, if you sell your previous main residence within 18 months of the purchase date, you can claim a full refund of the ADS from Revenue Scotland.
You must apply for the refund within 12 months of the date you sold your previous property. Your solicitor can handle this claim, or you can apply directly through Revenue Scotland's online portal.
The buyer pays LBTT, but in practice your solicitor handles everything. After completion, your solicitor submits the LBTT return and pays the tax to Revenue Scotland on your behalf. The deadline is 30 days from the date of completion.
Your solicitor will include the LBTT amount in the total costs they outline before you commit to a purchase. It sits alongside their fees, registration dues, and any other disbursements.
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