Finance⏱ 4 min read
Stamp Duty in Scotland: How LBTT Is Calculated
Scotland replaced SDLT with Land and Buildings Transaction Tax (LBTT) in 2015. The rates, thresholds, and first-time buyer relief are different — and more progressive. Here is the full calculation.
If you are buying property in Scotland, you pay LBTT — not SDLT. The structure is similar (graduated rates on bands) but the thresholds, rates, and reliefs differ from England and Wales. Getting this wrong means budgeting incorrectly from the start.
LBTT Rates for Residential Property (2024/25)
Purchase Price BandLBTT RateOn That Portion
Up to £145,0000%£0
£145,001 to £250,0002%Up to £2,100
£250,001 to £325,0005%Up to £3,750
£325,001 to £750,00010%Up to £42,500
Above £750,00012%On the excess
Worked Example: £280,000 Property in Scotland
Band 1 (up to £145,000): 0% x £145,000 = £0
Band 2 (£145,001-£250,000): 2% x £105,000 = £2,100
Band 3 (£250,001-£280,000): 5% x £30,000 = £1,500
Total LBTT: £3,600
Compare to England (SDLT) at same price:
SDLT: 0% on £125,000 + 2% on £125,000 + 5% on £30,000 = £4,000
Scotland is cheaper at £280,000.
England is cheaper below approximately £145,000 (Scotland 0% threshold vs England £125,000).
Scotland is cheaper from £145,000 to approximately £330,000.
First-Time Buyer Relief (LBTT)
First-time buyers in Scotland receive additional relief:
The 0% threshold is raised to £175,000 (instead of £145,000)
First-time buyer buying £200,000:
Without relief: 0% on £145,000 + 2% on £55,000 = £1,100
With FTB relief: 0% on £175,000 + 2% on £25,000 = £500
Saving: £600
The maximum relief: the difference in tax up to £175,000
Properties above £175,000 benefit from the higher 0% threshold
on the first £175,000, but pay standard rates above.
Additional Dwelling Supplement (ADS) — Scotland's Second Home Surcharge
Scotland's equivalent of England's 3% surcharge:
ADS rate (from April 2024): 6% on the TOTAL purchase price
Example: £250,000 buy-to-let in Scotland:
Standard LBTT: 0% on £145,000 + 2% on £105,000 = £2,100
ADS: 6% x £250,000 = £15,000
Total LBTT + ADS: £17,100
Scotland's ADS (6%) is now higher than England's surcharge (3%),
making buy-to-let economics tougher in Scotland.
Comparison: same £250,000 property in England:
SDLT: £2,500 standard + £7,500 surcharge (3%) = £10,000
Scotland: £17,100
Difference: £7,100 more in Scotland at this price point.