Land & Buildings Transaction Tax

Find out how much tax you will pay on your property purchase. (Figures correct as of April 2021)

Since 1st April 2015 all properties sold in Scotland need to pay Land & Buildings Transaction Tax (LBTT), which replaced Stamp Duty Land Tax. LBTT is paid based on the following bands, however only the portion of the selling price above each threshold commands that tax rate.

The LBTT bands:

• £0 to £145,000 - No tax
• £145,001 to £250,000 - 2%
• £250,001 to £325,000 - 5%
• £325,001 to £750,000 - 10%
• Over £750,000 - 12%

First-Time Buyers

A relief for first-time buyers is available, which increases the residential nil rate band of LBTT to £175,000.

From 1 April 2021, the availability of the relief will result in a reduction in tax of up to £600 for qualifying first-time buyers, relative to the rates which would have otherwise applied.

More information including first-time buyer FAQs is available on the Revenue Scotland website.

The calculation

If you are buying a property at £260,000 you will pay tax as follows:

On the first £145,000 of your purchase you will pay 0% tax = £0

On the proportion between £145,001 and £250,000 you will pay tax at a rate of 2% = £2100

On the proportion between £250,001 and £260,000 you will pay tax at a rate of 5% = £500

The total tax bill = £2600

Because it can be quite confusing working out the tax bill using the various different bands we’ve developed a handy calculator to help! Simply enter the amount that you are purchasing at and we’ll quickly show you the amount of LBTT you’ll likely be paying.