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Land and Buildings Transaction Tax (LBTT), Scotland

LBTT is the Scottish equivalent of Stamp Duty, and is the tax charged by the Government in Scotland when you buy a home

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.

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 homes over £145,000 there is no LBTT to pay on the first £145,000, then the following rates apply:

Purchase price

     LBTT rate

£0 to £145,000

     0%

£145,001 to £250,000 

     2%

£250,001 to £325,00 

     5%

£325,001 to £750,000

     10%

Over £750,000

     12%

What if I'm a first time buyer?

If you are a first time buyer, there is no LBTT to pay on the first £175,000, then the following rates apply:

Purchase price

     LBTT rate

£0 to £175,000

     0%

£145,001 to £250,000 

     2%

£250,001 to £325,000 

     5%

£325,001 to £750,000

     10%

Over £750,000

     12%

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What if I'm an investor or own more than one property?

If you are buying an investment property or an additional home in Scotland, you will need to pay the standard rates of LBTT, as well as the Additional Dwelling Supplement (ADS) which is an extra 4% on the total purchase price of the property. The following rates will apply:

Purchase price

     LBTT rate

£0 to £145,000

     4%

£145,001 to £250,000 

     6%

£250,001 to £325,000 

     9%

£325,001 to £750,000

     14%

Over £750,000

     16%