Blog · LBTT basics
What Is LBTT?
What is LBTT (Land and Buildings Transaction Tax)? Who pays it, how the bands work, first-time buyer relief, the 8% ADS, and how it differs from stamp duty.
Published 4 October 2026 · Rates checked October 2026
The simple answer
LBTT (Land and Buildings Transaction Tax) is the tax you pay when you buy property or land in Scotland. It replaced Stamp Duty Land Tax (SDLT) in Scotland on 1 April 2015 and is collected by Revenue Scotland, Scotland's devolved tax authority.
If you are buying in England or Northern Ireland you pay SDLT instead, and in Wales it is Land Transaction Tax (LTT). The three taxes look similar, but the rates and some rules are different — which is why a Scotland purchase must never be worked out with an English stamp duty calculator.
How LBTT is charged
LBTT is charged in slices, like income tax. Each rate applies only to the part of the price inside its band:
| Slice of the price | Standard rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| Above £750,000 | 12% |
So on a £300,000 home a standard buyer pays £4,600 — not 5% of £300,000. Try it yourself in the LBTT calculator, which shows every slice.
The three things that change your bill
1. First-time buyer relief
If every buyer is a genuine first-time buyer, the 0% band rises from £145,000 to £175,000. There is no price cap, and the saving is worth up to £600. See the first-time buyer calculator.
2. The Additional Dwelling Supplement (ADS)
Buying a second home or buy-to-let while you still own another property adds ADS: 8% of the whole price since 5 December 2024, on purchases of £40,000 or more. It is charged on top of the band tax. Use the LBTT calculator with ADS to see both parts.
3. Commercial and mixed-use property
Shops, offices, land and mixed-use buildings (such as a shop with a flat above) use lower non-residential bands: 0% to £150,000, 1% to £250,000 and 5% above. Leases have their own rules based on the value of the rent. The commercial calculator and lease calculator cover these.
When and how do you pay?
A tax return must be made and the tax paid within 30 days of the effective date of the transaction — usually the completion date when you get the keys. In practice your solicitor files the return around completion and collects the money from you beforehand. The step-by-step timing is explained in when is LBTT payable.
Worked example
A first home at £250,000: a standard buyer pays 2% on £105,000 = £2,100. A first-time buyer pays 2% on £75,000 = £1,500. As a second home, ADS adds 8% × £250,000 = £20,000, making £22,100 in total. More prices are worked through in the LBTT worked examples.
Frequently asked questions
What does LBTT stand for?
LBTT stands for Land and Buildings Transaction Tax. It is the property transaction tax paid when you buy land or property in Scotland, collected by Revenue Scotland since 1 April 2015.
Is LBTT the same as stamp duty?
It is Scotland's equivalent of stamp duty (SDLT), but the bands, rates and some rules differ. Scotland has no non-resident surcharge, first-time buyer relief has no price cap, and ADS is 8%.
Who pays LBTT?
The buyer pays LBTT, not the seller. Your solicitor normally submits the return and pays Revenue Scotland as part of completion.
What is the LBTT rate on a £300,000 house?
A standard buyer pays £4,600: 0% to £145,000, 2% on £105,000 and 5% on £50,000. A first-time buyer pays £4,000 because the nil band rises to £175,000.
Do I pay LBTT on a property under £145,000?
No tax is due at standard rates on the first £145,000, but a return may still be required depending on the transaction. Your solicitor will confirm.