LBTT Scotland. 8% ADS modelled.

How LBTT works in Scotland in 2026

LBTT (Land and Buildings Transaction Tax) is the Scottish equivalent of England's SDLT. It's been in force since 1 April 2015, administered by Revenue Scotland, and replaced UK SDLT on Scottish property purchases from that date. The bands and rates are set by the Scottish Government and can differ from the rest of the UK at any time.

Like SDLT, LBTT is sliced — each rate only applies to the portion of the price within its band. The standard residential bands are: 0% to £145,000; 2% £145,001–£250,000; 5% £250,001–£325,000; 10% £325,001–£750,000; 12% above £750,000. These bands have been stable for several years and there's no announced change for 2026/27.

First-time buyer relief in Scotland

Scotland's first-time buyer relief is much simpler than England's. It works as a single change: the nil-rate threshold rises from £145,000 to £175,000 — a £30,000 uplift. Above £175,000, the standard bands apply normally. There is no upper price cap, unlike England's FTB relief which disappears entirely at £500,001. A Scottish first-time buyer purchasing a £400,000 property still benefits from the £175k nil-rate, then pays the standard 2% / 5% rates on the slices above.

To qualify as a first-time buyer for LBTT relief, you (and any joint purchaser) must have never owned a freehold or leasehold residential property anywhere in the world, and you must intend to occupy the property as your only or main residence. Inherited even a small share of a property anywhere? You're no longer a first-time buyer.

The Additional Dwelling Supplement (ADS) — Scotland's biggest mechanical difference

This is where LBTT diverges most significantly from SDLT. Rather than adding a surcharge to each band's rate (England's approach), Scotland charges a flat 8% of the whole purchase price as a single line item, provided the price is at least £40,000.

The rate has changed several times: it was introduced at 3% in April 2016, rose to 4% in January 2019, to 6% in December 2022, and most recently to 8% effective 5 December 2024 (2024 Scottish Budget). The dates are inclusive of contract conclusion, with the actual application based on the effective date of the transaction.

The whole-price mechanic has a large numerical effect. A £200,000 second home in Scotland faces £1,100 of standard LBTT (2% of the slice above the £145k nil-rate) plus £16,000 of ADS — total £17,100. The equivalent property in England would face about £11,500 of additional-rate SDLT. The gap is even bigger on lower-value second homes: a £100,000 second home in Scotland faces £0 standard LBTT (entirely within the nil-rate) plus £8,000 ADS — Scotland still charges 8%, whereas England's banded surcharge would only generate about £5,000 (5% on £100k).

Reclaiming ADS

If you complete on a new main residence in Scotland before selling your old one, you pay the 8% ADS up front but can reclaim it (the 8% only, not the standard LBTT) if you sell the previous main residence within 36 months of buying the new one. The claim is made through Revenue Scotland's online ADS refund service. Claim deadlines: 12 months from the sale of the old home or 12 months from the new purchase's filing deadline, whichever is later.

What about non-residents?

Scotland has no non-resident surcharge. This is one of the simplest LBTT vs SDLT differences. A non-UK resident buying property anywhere in Scotland pays the same LBTT as a Scottish resident would. The +2% non-resident surcharge only exists for SDLT (England & NI).

Filing and payment deadlines

LBTT returns are due within 30 days of completion (compared with 14 days for SDLT). Your solicitor or conveyancer normally files the LBTT return with Revenue Scotland and pays on the day of completion, then bills you for the amount on your closing statement. You should never have to pay Revenue Scotland directly yourself, but it's worth understanding the figure on your statement before you sign.

Non-residential (commercial) LBTT rates

A lot of people land on this page looking for Scotland's commercial rates, so here they are — even though the calculator above is residential-only. Non-residential covers commercial property (shops, offices), forests, agricultural land on a working farm, and six or more residential properties bought in one transaction. The rates are far gentler than residential, and they haven't changed since 25 January 2019 — the 2026/27 Scottish Budget confirmed no changes to any LBTT rates or bands, including these.

Same slice mechanic as residential. Revenue Scotland's own worked example: a £465,000 commercial purchase pays £0 on the first £150k, £1,000 on the next £100k (1%), and £10,750 on the remaining £215k (5%) — £11,750 total. Note there's no ADS on genuinely non-residential purchases, which is why buying six or more dwellings in one transaction (taxed as non-residential) can be dramatically cheaper than buying five.

Commercial leases are a separate LBTT regime again: tax is charged on the net present value (NPV) of the rent over the lease term, a lease is usually notifiable to Revenue Scotland once that NPV passes £150,000, and — a detail that catches people out — LBTT on leases gets reviewed every three years, so the tax can change mid-lease. Any premium paid is taxed like a purchase. If you're dealing with a lease, use Revenue Scotland's lease calculator — it's the right tool for that job.

Things this tool deliberately doesn't model

• Non-residential and mixed-use purchases. The rates are in the table above so you can sanity-check a quote, but the calculator itself is residential-only. Mixed-use property uses the non-residential bands.
• Multiple Dwellings Relief. LBTT MDR is available in some circumstances for purchases of multiple residential properties as part of a single transaction.
• Linked transactions. Revenue Scotland may link purchases between the same parties.
• Companies and trusts. Corporate purchases over £40,000 are caught by ADS regardless of whether the company owns other properties. Specialist advice needed.
• Lease transactions. Commercial leases are taxed on the NPV of rent (see above) and long residential leases have their own treatment — neither is modelled here.