What is Land and Buildings Transaction Tax (LBTT)?
Scotland's equivalent of stamp duty, charged on property and land purchases.
Key Facts
- ✓ Applies in Scotland only (replaced SDLT in 2015)
- ✓ Collected by Revenue Scotland
- ✓ First £145,000 is tax-free
- ✓ 8% Additional Dwelling Supplement on second homes
- ✓ Different rates and bands compared to SDLT
Current Rates (2025/26)
- ▸ 0% on first £145,000
- ▸ 2% on £145,001-£250,000
- ▸ 5% on £250,001-£325,000
- ▸ 10% on £325,001-£750,000
- ▸ 12% above £750,000
Explanation
Land and Buildings Transaction Tax (LBTT) is the Scottish equivalent of Stamp Duty Land Tax (SDLT). It replaced SDLT in Scotland from 1 April 2015 when the power to set property transaction taxes was devolved to the Scottish Parliament. Like SDLT, LBTT is a progressive tax with different rates applying to different portions of the purchase price. The rates and thresholds differ from SDLT. For residential property, the first £145,000 is tax-free. Rates then increase: 2% on £145,001 to £250,000, 5% on £250,001 to £325,000, 10% on £325,001 to £750,000, and 12% above £750,000. Scotland also applies an Additional Dwelling Supplement (ADS) of 8% on second homes and buy-to-let purchases. LBTT is collected by Revenue Scotland.
Try the calculator: Use our free calculator to see how land and buildings transaction tax (lbtt) affects your finances.
Stamp Duty Calculator →Other Glossary Terms
The system HMRC uses to collect income tax and National Insurance directly from employees' wages.
National InsuranceA UK tax on earnings and self-employed profits that funds the state pension, NHS, and benefits.
Personal AllowanceThe amount of income you can earn each year before paying income tax — currently £12,570.
Basic Rate (20%)The 20% income tax rate applied to taxable income between £12,571 and £50,270.
Higher Rate (40%)The 40% income tax rate applied to taxable income between £50,271 and £125,140.
Additional Rate (45%)The 45% income tax rate applied to taxable income above £125,140.