Land and Buildings Transaction Tax (LBTT), Scotland

 

Land and Buildings Transaction Tax (LBTT) is the Scottish equivalent of Stamp Duty and has been in place since 2015. New changes by the Scottish Government now mean that there is no LBTT to pay for first-time buyers on homes up to £175,000, an increase from £145,000. And if your first home costs more than £175,000, you won’t have to pay stamp duty on the first £175,000.

What is LBTT?

Land and Buildings Transaction Tax (LBTT) is the tax charged by the Government in Scotland when you buy a home for more than £175,000.

Why do we have to pay it?

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. So, put simply, if you don't pay the LBTT, you can't buy your new home. Your solicitor will help you make the transfer to pay the LBTT for you.

How much is LBTT?

Purchase price of

  • up to £175,000*, LBTT rate = 0%
  • Above £175,000 to £250,000, LBTT rate = 2%
  • Above £250,000 to £325,000, LBTT rate = 5%
  • Above £325,000 to £750,000, LBTT rate = 10%
  • Over £750,000, LBTT rate = 12%