If you are buying a home in Scotland, Land and Buildings Transaction Tax (LBTT) is one of the costs to check before you make an offer. The amount depends on the purchase price, the transaction's effective date, whether you qualify for first-time buyer relief and whether the Additional Dwelling Supplement (ADS) applies.
The short answer: how do I work out LBTT?
To estimate LBTT, identify the effective date, residential price and any linked transaction. Apply each current rate to its price slice, then check whether every joint buyer qualifies for first-time buyer relief and whether ADS applies. Use Revenue Scotland's property transactions calculator. This is a practical estimate, not tax advice: your solicitor or tax adviser should confirm the return, relief and any repayment.
Current residential LBTT rates
| Slice of residential purchase price | Rate |
|---|---|
| Up 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% |
These are progressive bands. Check Revenue Scotland's current residential property rates and bands for the effective date.
First-time buyer relief
Eligible first-time buyers can claim relief that increases the nil-rate threshold from £145,000 to £175,000. The maximum saving is £600. Every buyer in a joint purchase must qualify, and the buyer must occupy the dwelling as their only or main residence. Confirm the conditions with Revenue Scotland's first-time buyer guidance.
Additional Dwelling Supplement (ADS)
ADS can apply when a buyer acquires an additional dwelling or when a company buys a dwelling. It is separate from ordinary LBTT and can depend on the effective date, ownership position, linked transactions and whether a replacement-main-residence repayment condition is met. Ask your solicitor to check the current ADS rate and repayment rules.
Documents and filing checklist
- Purchase price, contract and effective date.
- Names of every buyer and evidence relevant to first-time buyer status.
- Ownership of other dwellings, any sale of a former main residence and dates.
- Details of linked transactions, companies, trusts or multiple dwellings.
- Revenue Scotland calculator result and assumptions used.
- Solicitor's confirmation of the return, filing deadline, relief and any ADS claim.
A residential transaction with consideration of £40,000 or more is generally notifiable even where relief reduces tax to nil. Confirm the return requirement with your solicitor or Revenue Scotland.