LBTT — Land & Buildings Transaction Tax

How LBTT works in Scotland, 2026/27

Land and Buildings Transaction Tax replaced stamp duty in Scotland in 2015 and runs on its own bands: nothing to £145,000, 2% to £250,000, 5% to £325,000, 10% to £750,000 and 12% beyond, always on the slice within each band. A £300,000 home for a mover comes to £4,600, about 1.5% of the price. First-time buyer relief lifts the nil-rate band to £175,000, worth up to £600, a politer discount than England's, where first-time buyers can save many thousands.

The Additional Dwelling Supplement bites hard

Scotland's surcharge on second homes and buy-to-lets is the steepest in the UK: 8% of the entire price, on top of the standard bands. The same £300,000 purchase as an additional property costs £28,600, nearly ten times the mover's bill, and £24,000 of it is the supplement alone. Landlords comparing cross-border deals discover this line item decides more purchases than the yield does. The supplement can be reclaimed if you're replacing your main residence and sell the old one within the time limit.

Scotland against the rest

Scottish bands start lower than England's £125,000 threshold but climb more gently through mid-market prices, so typical family homes often pay similar amounts either side of the border while the picture diverges sharply for additional properties. England and Northern Ireland run through the stamp duty calculator, Wales through the LTT calculator, and buyers weighing a rental purchase should let the buy-to-let analyser absorb the 8% supplement into the full deal maths.