buying

LBTT in Scotland: rates, the second home supplement and examples

LBTT, the Scottish stamp duty: 2026 to 2027 rates, first-time buyer relief, the 8% Additional Dwelling Supplement and worked examples at six prices.

4 min read
Last reviewed 4 November 2026
By Your Property Check team

Part 1 of 9

General information, not advice

This guide is about Scotland. England and Northern Ireland charge Stamp Duty Land Tax and Wales charges Land Transaction Tax, with different bands. It is general information, not advice, so check Revenue Scotland or ask your solicitor for your own case. See our terms. We read the sources on 4 November 2026, and the Scottish Budget may change rates, so recheck before you buy.

Part 2 of 9

What LBTT is

Revenue Scotland says LBTT is a tax applied to residential and commercial land and buildings transactions where a chargeable interest is acquired, and that it replaced UK Stamp Duty Land Tax in Scotland from 1 April 2015. GOV.UK confirms that people buying in Scotland pay Land and Buildings Transaction Tax instead of SDLT. The buyer, not the seller, is the person affected, though the tax shapes what buyers can offer. Our LBTT glossary entry gives the short definition.

Part 3 of 9

Residential rates for 2026 to 2027

The Scottish Government's 2026 to 2027 tax ready reckoner and Revenue Scotland give the same bands:

Part of the price	LBTT rate
Up to £145,000	0%
£145,001 to £250,000	2%
£250,001 to £325,000	5%
£325,001 to £750,000	10%
Above £750,000	12%

LBTT is charged in slices, like income tax. You pay each rate only on the part of the price that falls in that band, not on the whole price.

Part 4 of 9

First-time buyer relief

Revenue Scotland says first-time buyer relief raises the residential nil rate band of LBTT to £175,000, and the Scottish Government ready reckoner records the nil rate band ceiling for first-time buyers as £175,000. All the bands above stay the same. In the table below the saving is at most £600, the 2% that would otherwise be charged on the £30,000 between £145,000 and £175,000.

Part 5 of 9

The Additional Dwelling Supplement

Revenue Scotland says the Additional Dwelling Supplement (ADS) is an additional amount of LBTT charged at 8% of the relevant consideration. It usually applies when a buyer purchases a dwelling that results in owning more than one dwelling and the buyer is not replacing their main residence, where the total purchase price is £40,000 or more. The Scottish Government ready reckoner records the ADS as a flat 8% rate. Revenue Scotland notes that changes to the rules from 1 April 2024 are not retrospective, so timescales and repayment conditions depend on the date of your transaction. Ask your solicitor whether the supplement applies, and whether any of it can be repaid.

Part 6 of 9

Worked examples at six prices

We computed this table with our own LBTT code (band version 2025-04) and checked it by hand. For a £300,000 standard purchase, the tax is 2% of £105,000, which is £2,100, plus 5% of £50,000, which is £2,500, a total of £4,600.

Price	LBTT standard	LBTT with ADS	First-time buyer relief
£150,000	£100	£12,100	£0
£200,000	£1,100	£17,100	£500
£250,000	£2,100	£22,100	£1,500
£300,000	£4,600	£28,600	£4,000
£400,000	£13,350	£45,350	£12,750
£500,000	£23,350	£63,350	£22,750

The ADS column is the standard tax plus 8% of the whole price. At £300,000 that is £4,600 plus £24,000. The first-time buyer column is the tax payable with the relief, so the saving at £300,000 is £600.

Part 7 of 9

Reading the table

Three patterns stand out. First, the tax grows quickly once a price passes £250,000, because the 5% and 10% bands begin to apply. Second, the supplement dominates the bill for a second home: at £200,000 the standard tax is £1,100, while the supplement adds £16,000. Third, first-time buyer relief is modest in cash terms, and the saving stops growing once the price passes the point where the extra £30,000 nil rate slice has been fully used. It is worth claiming, but it will not change the affordability of a home by itself. Always run your own price through the calculator before you make an offer, and ask your solicitor to confirm the exact tax on your transaction.

Part 8 of 9

Returns and payment

Revenue Scotland says you must send a return for most residential purchases where the chargeable consideration is £40,000 or more, even if no LBTT is payable. We did not find a filing deadline on the pages we read, so ask your solicitor who submits the return and by when.

Part 9 of 9

How this compares with England

The Scottish bands are not the same as the English ones. For comparison, see our first-time buyer stamp duty guide for England and Northern Ireland, and the stamp duty calculator, which covers Scotland, England and Wales. If you are selling in Scotland rather than buying, read our guide to selling a house in Scotland.

Our take

Cost the tax before you set your budget

LBTT is 0% up to £145,000, first-time buyers get a £175,000 nil rate band, and many second homes and buy-to-lets bought for £40,000 or more carry an 8% Additional Dwelling Supplement. We think the supplement is the line to check first if you are not buying a main home.

Your Property Check adds a calculator that covers it. Our free stamp duty calculator handles SDLT, LBTT and LTT, including first-time buyer and additional-property rates, so you can compare the tax across nations before you offer.

Calculate my tax

Our opinion, drawn from the facts on this page: not advice and not a forecast. We earn from OfferCheck reports and from introducing sellers to cash buyers, so weigh it with that in mind (see our disclosure). We are not authorised or regulated by the FCA.

Questions, answered

Frequently asked questions

What is LBTT?

Land and Buildings Transaction Tax, the tax Scottish buyers pay instead of stamp duty. Revenue Scotland says it replaced UK Stamp Duty Land Tax in Scotland from 1 April 2015.

How much LBTT will I pay?

On a standard residential purchase, 0% to £145,000, 2% to £250,000, 5% to £325,000, 10% to £750,000 and 12% above, each rate on its own slice. At £300,000 that is £4,600.

What is the Additional Dwelling Supplement?

An extra 8% of the price, according to Revenue Scotland, usually charged when a purchase of £40,000 or more leaves the buyer owning more than one dwelling and they are not replacing their main residence.

Does Scotland have first-time buyer relief?

Yes. Revenue Scotland says first-time buyer relief raises the nil rate band to £175,000. In our examples it saves at most £600.

Is LBTT the same as stamp duty?

No. GOV.UK says people buying in Scotland pay LBTT instead of Stamp Duty Land Tax. It has its own bands, reliefs and supplement.

Where this comes from

Sources

Last reviewed 4 November 2026 by the Your Property Check team. This page is general information, not legal, tax or financial advice. For your own situation, speak to a conveyancing solicitor or another qualified professional.