LBTT Calculator
Buying a home in Scotland priced at £300,000 means paying approximately £3,950 in Land and Buildings Transaction Tax – but the final amount depends on whether you are a first-time buyer, own other property, and how the transaction is structured. An LBTT calculator removes the guesswork by applying the exact rates and bands to your purchase price.
What Is Land and Buildings Transaction Tax (LBTT)?
Land and Buildings Transaction Tax is a devolved tax charged on the purchase of land and buildings in Scotland. It replaced UK Stamp Duty Land Tax (SDLT) in Scotland on 1 April 2015 and is administered by Revenue Scotland.
LBTT applies to both residential and non-residential transactions, including freehold purchases, lease premiums, and property transfers. The tax uses a progressive slab system, meaning each portion of the purchase price is taxed at the rate for its band – only the amount within each band is taxed at that rate, not the entire price.
What Are the Current LBTT Rates for Residential Property?
The residential LBTT rates as of 2026 are:
| Purchase price band | LBTT rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Over £750,000 | 12% |
Each rate applies only to the portion of the price falling within that band. For example, on a £200,000 purchase, the first £145,000 is tax-free and the remaining £55,000 is taxed at 2%, giving an LBTT bill of £1,100.
How Does First-Time Buyer Relief Work?
First-time buyers purchasing their first residential property in Scotland benefit from an enhanced nil-rate band. Instead of the standard £145,000 threshold, the first £175,000 is tax-free. This relief applies to properties up to £350,000 in value.
The first-time buyer rates are therefore:
| Purchase price band | LBTT rate |
|---|---|
| Up to £175,000 | 0% |
| £175,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Over £750,000 | 12% |
On a £250,000 home, a first-time buyer pays £1,500 in LBTT compared to £2,100 for a non-first-time buyer – a saving of £600. No separate claim is needed; the relief is applied automatically when the LBTT return is filed.
What Is the Additional Dwelling Supplement (ADS)?
The Additional Dwelling Supplement is a surcharge on top of standard LBTT when you buy an additional residential property – for example, a second home or a buy-to-let investment. The current ADS rate is 8% of the total purchase price, charged on properties costing £40,000 or more.
ADS applies in these situations:
- You already own another residential property anywhere in the world
- You are buying a property for someone else to live in (such as a child) but will not replace your main residence
- A company is purchasing a residential property
ADS does not apply when:
- You are replacing your main residence and have sold (or will sell within 36 months) the previous one
- The property costs less than £40,000
- You are a first-time buyer purchasing your only property
On a £300,000 additional property, the ADS alone adds £24,000 to the tax bill, on top of the standard LBTT of £4,600.
ADS rules change periodically – always check the current rate on the Revenue Scotland website before completing your transaction.
What Are the Non-Residential LBTT Rates?
Purchases of commercial or non-residential property follow a separate rate schedule:
| Purchase price band | LBTT rate |
|---|---|
| Up to £150,000 | 0% |
| £150,001 to £250,000 | 1% |
| Over £250,000 | 5% |
For non-residential leases, the tax is based on the net present value (NPV) of the rent:
| NPV of rent | LBTT rate |
|---|---|
| Up to £150,000 | 0% |
| Over £150,000 | 1% |
A mixed transaction involving both residential and non-residential elements is typically treated as non-residential for LBTT purposes, which can result in a lower tax liability.
How to Calculate LBTT Step by Step
To calculate LBTT manually, follow this process:
- Determine the transaction type – residential or non-residential
- Identify the purchase price – the total consideration paid
- Apply the bands progressively – calculate the tax for each band separately
- Add any supplements – ADS if applicable
- Subtract any reliefs – first-time buyer relief, for example
Residential example – £400,000 purchase (no reliefs):
| Band | Taxable amount | Rate | Tax |
|---|---|---|---|
| Up to £145,000 | £145,000 | 0% | £0 |
| £145,001–£250,000 | £105,000 | 2% | £2,100 |
| £250,001–£325,000 | £75,000 | 5% | £3,750 |
| £325,001–£400,000 | £75,000 | 10% | £7,500 |
| Total | £400,000 | £13,350 |
First-time buyer example – £400,000:
| Band | Taxable amount | Rate | Tax |
|---|---|---|---|
| Up to £175,000 | £175,000 | 0% | £0 |
| £175,001–£250,000 | £75,000 | 2% | £1,500 |
| £250,001–£325,000 | £75,000 | 5% | £3,750 |
| £325,001–£400,000 | £75,000 | 10% | £7,500 |
| Total | £400,000 | £12,750 |
The first-time buyer relief saves £600 in this case. The calculator above handles all of these bands, supplements, and reliefs automatically – enter the price and transaction details to get your result instantly.
LBTT vs SDLT: Key Differences
Since Scotland, England, Northern Ireland, and Wales each have their own property transaction tax, buyers often compare them:
| Feature | LBTT (Scotland) | SDLT (England/NI) |
|---|---|---|
| Nil-rate band (standard) | £145,000 | £250,000 |
| First-time buyer nil-rate band | £175,000 | £425,000 |
| Top residential rate | 12% (over £750k) | 12% (over £1.5m) |
| Additional property surcharge | 8% ADS | 5% Higher Rate |
| Administered by | Revenue Scotland | HMRC |
LBTT generally results in lower tax on cheaper properties but higher tax on mid-range purchases compared to SDLT, particularly because of the lower nil-rate band.
Filing Your LBTT Return
An LBTT return must be submitted to Revenue Scotland within 30 days of the transaction’s effective date – usually the date of completion. Your solicitor typically handles this as part of the conveyancing process. Payment is due at the same time as filing.
Returns are submitted online via the Revenue Scotland portal. Late filing or late payment may result in penalties and interest charges.