Land and Buildings Transaction Tax (LBTT), Scotland
What is LBTT?
Land and Buildings Transaction Tax (LBTT) is the tax charged by the Government in Scotland when you buy a home of more than £145,000.
Why do we have to pay LBTT?
When you buy a property the change in land ownership has to be legally registered at the Land Registry. This process requires a certificate from Revenue Scotland – which they will only issue on receipt of the LBTT payment due on the purchase of the property.
The transfer of funds to pay the LBTT will be managed for you by your solicitor.
How much is LBTT?
For homes over £145,000 there is no LBTT to pay on the first £145,000, then the following rates apply:
|
Purchase price |
LBTT rate |
|
£0 to £145,000 |
0% |
|
£145,001 to £250,000 |
2% |
|
£250,001 to £325,000 |
5% |
|
£325,001 to £750,000 |
10% |
|
Over £750,000 |
12% |
Do I have to pay LBTT if I'm a first time buyer?
If you are a first time buyer, there is no LBTT to pay on the first £175,000, then the following rates apply:
|
Purchase price |
LBTT rate |
|
£0 to £175,000 |
0% |
|
£145,001 to £250,000 |
2% |
|
£250,001 to £325,000 |
5% |
|
£325,001 to £750,000 |
10% |
|
Over £750,000 |
12% |
What if I'm an investor or own more than one property?
|
Purchase price |
LBTT rate |
|
£0 to £145,000 |
4% |
|
£145,001 to £250,000 |
6% |
|
£250,001 to £325,000 |
9% |
|
£325,001 to £750,000 |
14% |
|
Over £750,000 |
16% |
LBTT FAQs
-
LBTT exemptions: Certain property transactions, such as transfers between spouses or civil partners, can be exempt from LBTT.
-
As of April 2021 the LBTT rates in Scotland are:
- Up to £145,000: 0%
- £145,001 to £250,000: 2%
- £250,001 to £325,000: 5%
- £325,001 to £750,000: 10%
- Over £750,000: 12%
-
Yes, first-time buyers in Scotland are required to pay LBTT if the property they are buying costs more than £175,000. However, if the property costs more than £175,000, you will need to pay LBTT but you will be able to claim relief on the first £175,000 of the price.
-
LBTT is typically paid upfront and is not added to the mortgage amount.
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