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.
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 £325,000 |
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% |
|
£175,001 to £250,000 |
2% |
|
£250,001 to £325,000 |
5% |
|
£325,001 to £750,000 |
10% |
|
Over £750,000 |
12% |
LBTT FAQs
-
Yes, first time buyers in Scotland are required to pay LBTT if the property they are buying costs more than £175,000. However, if the property costs more than £175,000, you will need to pay LBTT but you will be able to claim relief on the first £175,000 of the price.
-
LBTT is typically paid upfront and is not added to the mortgage amount.
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