Land and Buildings Transaction Tax (LBTT) (Scotland only)

Land and Buildings Transaction Tax (LBTT) has been in place since 2015 and is the Scottish equivalent of Stamp Duty. Recent changes made by the Scottish Government mean that home ownership could now be more affordable for first-time buyers, as you won’t pay any LBTT on a home up to £175,000 – and those buying first homes over £175,000 will only pay LBTT on the difference.

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, or £175,000 f you are a first time buyer.

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. So, put simply, if you don't pay the LBTT, you can't buy your new home. The transfer of funds to pay the LBTT will be managed for you by your solicitor.

How much is LBTT?

The LBTT tax rates for homes in Scotland are below:

Purchase Price

LBTT rate

£0 to £145,000

0% (Zero)

£145,001 to £250,000

2%

£250,001 to £325,000

5%

£325,001 to £750,000

10%

£750,001 and over

12%

 

See terms and conditions.