Understanding Scottish LBTT
Land and Buildings Transaction Tax (LBTT) replaced Stamp Duty Land Tax in Scotland from April 2015. Like SDLT, it operates on a progressive band system, but with different thresholds and rates. LBTT is administered by Revenue Scotland rather than HMRC.
First-Time Buyer Relief
First-time buyers in Scotland benefit from an increased nil-rate band of £175,000 (compared to £145,000 for standard purchases). This can save up to £600 on a qualifying purchase. Unlike the English SDLT first-time buyer relief, there is no upper property price limit for claiming the relief.
Additional Dwelling Supplement (ADS)
The ADS is charged at 6% of the total purchase price for additional residential properties over £40,000. This is higher than the equivalent English surcharge of 5%. The ADS applies to buy-to-let properties, second homes, and holiday lets.
Frequently Asked Questions
How is LBTT different from SDLT?▾
LBTT applies only to Scottish property purchases and has different rate bands. The key differences are lower thresholds for the nil-rate band (£145,000 vs £250,000), a higher ADS surcharge (6% vs 5%), and the administration is handled by Revenue Scotland. Both systems use progressive banding.
Can I reclaim the ADS if I sell my old property?▾
Yes. If you sell your previous main residence within 18 months of buying a new one, you can apply to Revenue Scotland for a reclaim of the ADS. The reclaim must be made within 18 months of the sale.
Do I need to file an LBTT return?▾
An LBTT return must be filed with Revenue Scotland within 30 days of the effective date (usually the completion date). Your solicitor will normally handle this. A return must be filed even if no LBTT is due.
Are there LBTT reliefs for shared ownership?▾
Yes. Shared ownership schemes in Scotland can benefit from sub-sale relief, where LBTT is calculated only on the share being purchased rather than the full market value. Your solicitor can advise on which relief applies to your specific arrangement.
Calclypso Editorial Team
LBTT rates verified against Revenue Scotland 2025-26 rates. Last updated: April 2026. This calculator is for estimation purposes only.