What is Land and Buildings Transaction Tax (LBTT)?
The Scottish 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 employee 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.
Frequently Asked Questions
What does land and buildings transaction tax (lbtt) mean?
The Scottish equivalent of stamp duty, charged on property and land purchases.
Why does land and buildings transaction tax (lbtt) matter?
Understanding land and buildings transaction tax (lbtt) helps you make informed financial decisions and ensure you pay the correct amount of tax. Getting it wrong could mean overpaying or underpaying HMRC, which may result in penalties or missed savings. Use our calculators to see how land and buildings transaction tax (lbtt) applies to your personal situation.
Where can I find more information about land and buildings transaction tax (lbtt)?
HMRC publishes official guidance on GOV.UK for all UK tax topics. For a quick overview, our glossary entries are written in plain English and updated each tax year. You can also use our free online calculators to model different scenarios and understand how changes to your income, deductions, or allowances affect your overall tax position.