LBTT rates: the full table
Standard residential rates (main residence)
| Purchase price | LBTT rate | Tax on this portion |
|---|---|---|
| Up to £145,000 | 0% | £0 |
| £145,001 to £250,000 | 2% | Up to £2,100 |
| £250,001 to £325,000 | 5% | Up to £3,750 |
| £325,001 to £750,000 | 10% | Up to £42,500 |
| Over £750,000 | 12% | 12% on amount above £750,000 |
First-time buyer rates (relief applied)
| Purchase price | LBTT rate |
|---|---|
| Up to £175,000 | 0% |
| £175,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Over £750,000 | 12% |
First-time buyer relief increases the nil-rate threshold from £145,000 to £175,000, saving up to £600. Source: Revenue Scotland. To qualify, all buyers in a joint purchase must be first-time buyers as defined by Revenue Scotland.
Additional Dwelling Supplement (buy-to-let / second home)
From 5 December 2024, buyers purchasing an additional residential property pay the standard LBTT rates plus an Additional Dwelling Supplement of 8% on the full purchase price. This applies to purchases of £40,000 or more.
The Scottish Government increased the ADS rate from 6% to 8% with effect from 5 December 2024 (Scottish Budget 2025-26). The Scottish Budget 2026-27, published January 2026, confirmed the 8% rate will remain unchanged. Contracts entered into on or before 4 December 2024 remain subject to the 6% rate.
LBTT worked examples
| Purchase price | Buyer type | LBTT due |
|---|---|---|
| £150,000 | First-time buyer | £0 |
| £150,000 | Standard buyer | £100 |
| £180,000 | First-time buyer | £100 |
| £180,000 | Standard buyer | £700 |
| £250,000 | First-time buyer | £1,500 |
| £250,000 | Standard buyer | £2,100 |
| £300,000 | Standard buyer | £4,600 |
| £400,000 | Standard buyer | £13,350 |
| £500,000 | Standard buyer | £23,350 |
| £300,000 | Additional property (ADS) | £28,600 |
On a £300,000 standard purchase: 0% on the first £145,000 = £0; 2% on the next £105,000 (up to £250,000) = £2,100; 5% on the next £50,000 (up to £300,000) = £2,500. Total: £4,600. LBTT is only charged on the slice of price within each band — it is not applied to the whole purchase price.
How LBTT affects your bid ceiling
LBTT is paid on settlement day, out of the cash you bring to the transaction — not from your mortgage. It must be factored into your total cash requirement alongside your deposit, solicitor fees, and any premium bid above Home Report value.
On a £250,000 standard purchase, you need approximately £2,100 in LBTT on top of your deposit and legal fees. On a £400,000 purchase, that rises to £13,350. These sums are significant and should be modelled before closing date.
Who is a first-time buyer for LBTT purposes?
Revenue Scotland defines a first-time buyer as a person who has never previously owned a dwelling — in Scotland, the rest of the UK, or anywhere in the world. This includes properties that were inherited, received as gifts, or previously owned and subsequently sold.
If you are buying jointly, all buyers must qualify as first-time buyers for the relief to apply. If one buyer has previously owned property anywhere in the world, the full relief is not available. The relief must be claimed in the LBTT return — your solicitor will do this on your behalf.
LBTT vs Stamp Duty — what's the difference?
LBTT is a separate Scottish tax with different rates and thresholds from Stamp Duty Land Tax (SDLT) in England. If you are buying in Scotland, always use an LBTT calculator — not an English Stamp Duty calculator. The Scottish Government sets LBTT rates independently, meaning UK Autumn Statements and Budgets do not change your Scottish tax liability unless the Scottish Government separately legislates.