Real Estate · Scotland

Scotland Stamp Duty (LBTT) Rates & Bands 2026: What You'll Pay

If you're buying in Scotland, you don't pay Stamp Duty Land Tax — you pay Land and Buildings Transaction Tax (LBTT), Scotland's own property tax with its own bands. They're close to the English system but not identical, and getting them mixed up can throw your budget out by thousands.

The 2026/27 LBTT residential bands

Like SDLT, LBTT is marginal — each rate applies only to the slice of price within its band.

Price band	Rate
Up to £145,000	0%
£145,001 – £250,000	2%
£250,001 – £325,000	5%
£325,001 – £750,000	10%
Above £750,000	12%

Worked examples

• £300,000: 0% on £145k, 2% on £105k (£2,100), 5% on £50k (£2,500) — total £4,600.
• £450,000: £2,100 + 5% of £75k (£3,750) + 10% of £125k (£12,500) — total £18,350.

First-time buyer relief

First-time buyers get a higher nil-rate threshold of £175,000 (instead of £145,000). On a £175,000 first home that's no LBTT at all; above £175,000, standard rates apply to the rest. The relief is worth up to £600.

The Additional Dwelling Supplement (ADS)

Buying a second home or buy-to-let in Scotland adds the Additional Dwelling Supplement at 8% of the whole price (raised from 6% in December 2024) on top of standard LBTT. On a £300,000 second property that's £24,000 of ADS on top of the £4,600 standard charge — £28,600 total. See our full Additional Dwelling Supplement guide for who pays, the £40,000 threshold and the 18-month repayment rule.

How LBTT differs from English SDLT in practice

Scotland's nil-rate band is higher than England's at £145,000, but the rates climb sooner — 5% starts at £250,000 in Scotland against £250,000 for the 5% band in England but running all the way to £925,000. The practical effect is that LBTT is cheaper than SDLT at the bottom of the market and noticeably more expensive in the middle.

On a £400,000 purchase a Scottish buyer pays materially more than an English one on the same price. That crossover sits somewhere around the £330,000 mark and catches people relocating south-to-north.

First-time buyer relief is structured differently too

England gives first-time buyers a separate rate schedule with a cliff edge at £500,000. Scotland simply raises the nil-rate band to £175,000 and leaves everything else alone. That means the Scottish relief is worth a flat maximum of £600, it never disappears at a threshold, and it is far simpler to apply — but it is also far less generous than the English equivalent for a typical first purchase.

The Additional Dwelling Supplement trap

ADS is the part that surprises people, because it does not work like the English surcharge. It is 8% of the entire purchase price, not a percentage added to each band — so it does not taper and there is no nil-rate portion.

• It applies from a purchase price of £40,000, so even a modest second property attracts a large charge.
• Buying before your existing home sells triggers it, but it is repayable if you sell the previous main residence within 18 months.
• At 8% it is the highest headline second-home surcharge of the three UK systems.

Practicalities

• LBTT is collected by Revenue Scotland, not HMRC, and the return is normally filed by your solicitor on completion.
• It is payable in cash at settlement and cannot be added to the mortgage.
• A return is required even where no tax is due, if the price exceeds the notification threshold.

Frequently asked questions

What are the LBTT rates in Scotland for 2026/27?
Land and Buildings Transaction Tax is marginal: 0% up to £145,000, 2% on £145,001–£250,000, 5% on £250,001–£325,000, 10% on £325,001–£750,000, and 12% above £750,000.

Do first-time buyers pay LBTT in Scotland?
First-time buyers get relief that raises the nil-rate threshold from £145,000 to £175,000. Standard rates apply to the portion above £175,000, so a first home up to £175,000 pays no LBTT.

What is the Additional Dwelling Supplement (ADS)?
ADS is a surcharge on second homes and buy-to-let in Scotland, charged at 8% of the whole price (increased from 6% in December 2024) on top of standard LBTT.

Is stamp duty different in Scotland?
Yes. Scotland does not use SDLT (Stamp Duty Land Tax). It has its own tax, LBTT, with different bands and thresholds. SDLT applies only in England and Northern Ireland; Wales uses LTT.

Stamp duty across the UK

Buying elsewhere in the UK? Each nation taxes property purchases differently:

• England & NI — Stamp Duty Land Tax: SDLT guide · SDLT calculator
• Wales — Land Transaction Tax: LTT guide · LTT calculator

Compare all three side by side in our UK stamp duty & property tax hub.

Scotland moved from SDLT to LBTT on 1 April 2015. For a purchase completed before that date, the historic SDLT rates by year apply instead.

Sources

• Revenue Scotland — LBTT residential rates and bands (2026/27)
• gov.scot — Scottish Budget 2025–26 / 2026–27 (rates confirmed unchanged)
• Revenue Scotland — Additional Dwelling Supplement (8% from December 2024)

Figures as of June 2026 for Scotland. Rates can change at Scottish Budgets — verify on revenue.scot before exchanging. This is general information, not regulated financial advice (FCA).