How much Land and Buildings Transaction Tax will I need to pay?
You pay Land and Buildings Transaction Tax on property purchases in Scotland from £145,000 (or £175,000 for most first time buyers). Use our Land and Buildings Transaction Tax Calculator below to work out how much tax you will need to pay.
Stamp Duty Land Tax – England and Northern Ireland Details
Land Transaction Tax – Wales Details
When do I need to pay Land and Buildings Transaction Tax?
Land and Buildings Transaction Tax must be paid on the date of completion of your purchase – therefore sufficient funds must be lodged with your Solicitor prior to that date.
You cannot extend your mortgage to borrow funds to cover your Land and Buildings Transaction Tax.
Who pays Land and Buildings Transaction Tax?
Land and Buildings Transaction Tax is paid in most cases by the new owner of the land or property.
Family gifts to cover Land and Buildings Transaction Tax are acceptable, as is payment of Land and Buildings Transaction Tax made by builders on new property.
How much Land and Buildings Transaction Tax will a first time buyer need to pay?
First Time Buyers have an additional allowance so that their zero rate threshold for Land and Buildings Transaction Tax is set £30,000 higher (£175,000 rather than £145,000)
A first time buyer can save up to £600 as a result of this concession.
How much is Additional Dwelling Supplement?
Where a buyer already owns a property or share of a property worth £40,000 or more anywhere in the World, then buys a second property, they can be liable to pay Additional Dwelling Supplement.
Additional Dwelling Supplement. is currently 8% of the purchase price in addition to the standard rate of LBTT. This can be paid by:
- someone buying a second home
- someone buying a rental property
- someone buying a property for a friend or family to use
- a company buying a property
A homeowner, who is moving home and sells their property at the same time, or before their new purchase with not pay Additional Dwelling Supplement.
A homeowner, buying a new home and selling their previous home with 36 months of the new purchase will pay Additional Dwelling Supplement – once the sale of the previous home is complete, the Additional Dwelling Supplement can be reclaimed.
Land and Buildings Transaction Tax – Residential Property Rates
| Property rates and band | LBTT Rates |
| Up to £145,000 | Zero |
| £145,000 to £250,000 | 2% |
| £250,000 to £325,000 | 5% |
| £325,000 to £750,000 | 10% |
| Over £750,000 | 12% |
Land and Buildings Transaction Tax – Rates with Additional Dwelling Supplement
| Property rates and band | LBTT Rates |
| Up to £145,000 | 8% |
| £145,000 to £250,000 | 10% |
| £250,000 to £325,000 | 13% |
| £325,000 to £750,000 | 18% |
| Over £750,000 | 20% |
What rate of Land and Buildings Transaction Tax does an overseas buyer pay?
An overseas buyer, buying in Scotland, pays Land and Buildings Transaction Tax at the current rates, plus Additional Dwelling Supplement.
Land and Buildings Transaction Tax and single economic units rules
Under the single economic units rules ownership across spouses, civil partners, cohabitants and parents with their minor children are considered a singe economic unit.
Therefore, if your wife, partner, cohabitee, or ten year old child owns a dwelling, the law deems you too own it to for the purposes of LBTT.
LBTT – Important note
Before committing to purchase or transfer of property you should speak to your Solicitor to:
Confirm the Land and Buildings Transaction tax due
Confirm you have the funds to cover the cost of the tax
FOR MORE INFORMATION VISIT THE REVENUE SCOTLAND WEBSITE LBTT PAGES