Scotland · Step-by-step tax examples
LBTT Worked Examples
LBTT is not one percentage applied to the whole price. These examples show how each band contributes to the final bill.
- Standard and first-time buyer examples
- Additional-home examples include 8% ADS
- Rates checked October 2026
Standard residential purchases
| Purchase price | Band working | Total LBTT |
|---|---|---|
| £145,000 | All in the 0% band | £0 |
| £200,000 | 2% on £55,000 | £1,100 |
| £250,000 | 2% on £105,000 | £2,100 |
| £300,000 | £2,100 + 5% on £50,000 (£2,500) | £4,600 |
| £325,000 | £2,100 + 5% on £75,000 (£3,750) | £5,850 |
| £500,000 | £5,850 + 10% on £175,000 (£17,500) | £23,350 |
| £750,000 | £5,850 + 10% on £425,000 (£42,500) | £48,350 |
| £1,000,000 | £48,350 + 12% on £250,000 (£30,000) | £78,350 |
£300,000 in full
A standard buyer pays nothing on the first £145,000. The next slice, from £145,001 to £250,000, is £105,000 at 2%, which is £2,100. The remaining £50,000 falls in the 5% band and adds £2,500. Total: £4,600.
First-time buyer examples
| Purchase price | First-time buyer LBTT | Standard LBTT | Saving |
|---|---|---|---|
| £175,000 | £0 | £600 | £600 |
| £200,000 | £500 | £1,100 | £600 |
| £250,000 | £1,500 | £2,100 | £600 |
| £300,000 | £4,000 | £4,600 | £600 |
| £500,000 | £22,750 | £23,350 | £600 |
| £1,000,000 | £77,750 | £78,350 | £600 |
The saving stays at £600 once the purchase price reaches the point where the whole extra £30,000 of nil band would otherwise have been taxed at 2%. Scotland's relief has no price cap, so the saving remains on higher-priced homes. See the first-time buyer guide for the eligibility conditions.
Additional-home examples with ADS
| Purchase price | Normal LBTT | ADS at 8% | Combined total |
|---|---|---|---|
| £39,999 | £0 | £0 — below the £40,000 ADS threshold | £0 |
| £100,000 | £0 | £8,000 | £8,000 |
| £200,000 | £1,100 | £16,000 | £17,100 |
| £300,000 | £4,600 | £24,000 | £28,600 |
| £500,000 | £23,350 | £40,000 | £63,350 |
Unlike normal LBTT, ADS is not sliced into bands. It is 8% of the entire purchase price. If you later sell your previous main residence within the allowed period, the ADS may be repayable — use the ADS reclaim calculator.
Commercial and mixed-use examples
| Purchase price | Band working | Commercial LBTT |
|---|---|---|
| £150,000 | All in the 0% band | £0 |
| £200,000 | 1% on £50,000 | £500 |
| £300,000 | £1,000 + 5% on £50,000 (£2,500) | £3,500 |
| £500,000 | £1,000 + 5% on £250,000 (£12,500) | £13,500 |
| £1,000,000 | £1,000 + 5% on £750,000 (£37,500) | £38,500 |
These examples cover a purchase price or premium only. LBTT on commercial lease rent is calculated separately from the rent's net present value.
Worked-example FAQs
How is LBTT calculated on a £300,000 home?
For a standard buyer: 0% on £145,000, 2% on £105,000 (£2,100), and 5% on £50,000 (£2,500). Total £4,600.
Why does a first-time buyer save exactly £600?
The nil band is £30,000 larger. At the 2% rate, £30,000 × 2% = £600. That is the maximum saving once the price is high enough for the whole extra nil band to matter.
Why is ADS so much larger than normal LBTT at £300,000?
Normal LBTT is banded and the first £145,000 is tax-free. ADS is 8% of the whole £300,000, so it adds £24,000 in one step.
Rates checked: October 2026 · Source: Revenue Scotland.