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.

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, or £175,000 if you are a first-time buyer.

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.

The transfer of funds to pay the LBTT will be managed for you by your solicitor.

How much is LBTT?

For First-Time Buyers:

Purchase price

     LBTT rate

Up to £175,000

     0%

£175,001 to £250,000

     2%

£250,001 to £325,00 

     5%

£325,001 to £750,000

     10%

Over £750,001

     12%

 

For Existing Homeowners:

Purchase price

     LBTT rate

Up to £145,000

     0%

Above £145,001 to £250,000

     2%

Above £250,001 to £325,00 

     5%

Above £325,001 to £750,000

     10%

Over £750,001

     12%