Land and Buildings Transaction Tax (Scotland)
How much tax will you have to pay when buying a property in Scotland?
You have to pay Stamp Duty Transaction Tax (LBTT) when buying a property in the UK over a certain price. This is charged on all purchases of houses, flats and other land and buildings.
The tax is different if the property or land is in:
- Scotland – Land and Buildings Transaction Tax
- England & Northern Ireland Stamp Duty Land Tax
- Wales – Land Transaction Tax
Land and Buildings Transaction Tax – Scotland
Information on LBTT temporary increase in nil rate band
A temporary increase in the nil rate band for LBTT residential property transactions from £145,000 to £250,000 will be introduced with effect from 15 July, 2020 and remain in place until 31 March 2021.
The revised rates and bands will only apply to transactions with an effective date on or after 15 July 2020.
Rates for the Additional Dwelling Supplement (ADS) and non-residential LBTT remain unchanged.
| Purchase Price or Transfer Value | Stamp Duty Rate |
|---|---|
| Up to £250,000 | 0% |
| Over £250,001 to £325,000 | 5% |
| Over £325,001 to £750,000 | 10% |
| £750,000 and over | 12% |
Example:
If the purchase price is above the nil rate tax band of £250,000, LBTT is charged at the appropriate rate on the amount of the chargeable consideration within the relevant bands. For example, a house bought for £280,000 is charged at:
- 0% for the first £250,000, then
- 5% for the next £30,000 and
- so £1,500 must be paid in LBTT
Consideration genuinely attributable to moveable property is not included within chargeable consideration. Moveable property includes fixtures and fittings eg. curtains and furniture.
Standard Residential and 2nd Home
Since 4th December 2014, you will only pay the rate of tax on the part of the property price within each tax band. (This is similar to how income tax is calculated).
From 1 April 2016, the Buy-to-let/second home rates were introduced and are 3 percentage points above the current SDLT (Stamp Duty Land Tax) residential rates. They are also charged on the portion of the value of the property that falls into each band.
| Band | Standard Rate | Buy-To-Let/2nd Home |
|---|---|---|
| Up to £125,000 | 0% | 3% |
| £125,001 to £250,000 | 2% | 5% |
| £250,001 to £925,000 | 5% | 8% |
| £925,001 to £1,500,000 | 10% | 13% |
| £1,500,000 and over | 12% | 15% |
Example:
If you buy a property for £275,000, you’ll pay £3,750 of Stamp Duty. This is made up of:
- nothing on the first £125,000
- £2,500 on the next £125,000
- £1,250 on the remaining £25,000
Non-residential property transactions – LBTT rates and bands
For non-residential property transactions, the rate of tax is determined in the same manner as for residential property transactions but by reference to different rates and bands. For further help or advice please complete the form on this page.
Additional Dwelling Supplement
For an Additional Dwelling Supplement is applied on purchases of additional residential properties (such as buy-to-let properties and second homes). For further help or advice please complete the form on this page.
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