Scotland · First-time buyer relief
First-Time Buyer LBTT Guide
Scotland's first-time buyer relief moves the tax-free threshold from £145,000 to £175,000. It is simple, has no price cap, and can save you up to £600.
- £175,000 nil-rate band
- No purchase-price cap
- Maximum saving £600
Who qualifies?
You may qualify if you are buying your first home and intend to occupy it as your main residence. In broad terms, a first-time buyer is someone who has not previously owned a residential property or an interest in one, in Scotland, elsewhere in the UK or anywhere else in the world.
The practical checks
- You have never owned a house, flat or other dwelling, including through certain inherited or shared arrangements that count as owning an interest.
- The new property will be your main home, not a second home, holiday home or buy-to-let.
- For a joint purchase, every buyer must satisfy the first-time buyer conditions for the relief to be claimed.
- First-time buyer relief and ADS are different rules. A genuine first home bought as your only property does not attract ADS.
If you previously owned non-residential land, inherited only a partial interest, are buying with someone who has owned before, or are buying through a trust or company, get advice before assuming the relief applies.
How the £175,000 nil band works
| Purchase price slice | Standard buyer | First-time buyer |
|---|---|---|
| First slice | 0% up to £145,000 | 0% up to £175,000 |
| Next slice | 2% to £250,000 | 2% on the part above £175,000, up to £250,000 |
| Higher slices | 5%, 10% and 12% bands | The same 5%, 10% and 12% bands |
The relief only changes the first band. It does not remove the higher bands. At a price of £1 million, for example, a first-time buyer pays £77,750 instead of the standard £78,350 — still a £600 saving.
First-time buyer examples
| Price | With relief | Standard LBTT | You save |
|---|---|---|---|
| £175,000 | £0 | £600 | £600 |
| £200,000 | £500 | £1,100 | £600 |
| £300,000 | £4,000 | £4,600 | £600 |
| £500,000 | £22,750 | £23,350 | £600 |
£300,000 worked example
With relief, the first £175,000 is taxed at 0%. The next £75,000 is at 2%, giving £1,500. The final £50,000 is at 5%, giving £2,500. The total is £4,000, compared with £4,600 using the standard £145,000 nil band.
Scotland or England: which relief is better?
England and Northern Ireland provide a larger saving for eligible first-time buyers at prices up to £500,000: no SDLT up to £300,000 and 5% only on the portion above that level. But if the price is above £500,000, that relief is lost completely. Scotland's relief is smaller, yet it remains available with no price cap.
Use the LBTT vs Stamp Duty comparison to see both systems at the same price.
How to claim the relief
- Tell your solicitor before completion that you believe you are a first-time buyer.
- Confirm that every joint buyer meets the conditions.
- The relief is claimed in the LBTT return; your solicitor normally handles this as part of the purchase.
- Keep the return and completion statement showing that the relief was included.
First-time buyer FAQs
How much can I save?
Up to £600. The nil band is £30,000 wider, and that slice would otherwise be taxed at 2%.
Is there a maximum purchase price?
No. Scotland's first-time buyer LBTT relief has no price cap.
We are buying together. Must we both be first-time buyers?
Yes, all buyers need to meet the first-time buyer conditions for the relief to apply to the joint purchase.
Does owning property abroad stop me claiming?
It can. Previous ownership anywhere in the world is relevant, not only property in Scotland or the rest of the UK.
How is the relief claimed?
It is claimed in the LBTT return, normally by the solicitor acting in the purchase.
Rates and relief checked: October 2026 · Source: Revenue Scotland.