Understanding LBTT in Scotland
Land and Buildings Transaction Tax (LBTT) replaced Stamp Duty Land Tax in Scotland on 1 April 2015. Like SDLT, it is a progressive tax, meaning you only pay the higher rate on the portion of the price that falls within each band. This is different from the old "slab" system where the rate applied to the entire purchase price.
Additional Dwelling Supplement (ADS)
If you are buying an additional residential property in Scotland (such as a second home, holiday let, or buy-to-let), you will pay the ADS of 6% on the total purchase price on top of the standard LBTT. This applies to properties costing £40,000 or more. You may be able to reclaim the ADS if you sell your previous main residence within 18 months of buying the new one.
Key Differences from English Stamp Duty
While both LBTT and SDLT are progressive taxes, the band thresholds and rates differ. Scotland has a nil rate band up to £145,000 (£175,000 for first-time buyers), compared to £125,000 (£300,000 for first-time buyers) in England. The ADS rate of 6% is also higher than England's 5% additional property surcharge. Use our calculator above to compare the tax you would pay in each country.