Land and Buildings Transaction Tax (LBTT)
You have to pay Land and Buildings Transaction Tax (LBTT) if you buy property or land in Scotland above a certain value.
Most people will know it as the tax they may pay when buying a house, but it also applies to non-residential purchases and leases.
LBTT is the Scottish equivalent of Stamp Duty Land Tax (SDLT). It's a fully devolved tax and the Scottish Government makes decisions about and sets LBTT rates. Announcements made by the UK Government about stamp duty do not apply in Scotland.
Any changes to LBTT are announced as part of the yearly Scottish Budget and must be approved by the Scottish Parliament.
LBTT is administered and collected by Revenue Scotland.
How much you pay: LBTT rates
Use the LBTT calculator on Revenue Scotland’s website to work out how much tax you may need to pay on a property.
You can also get information on rates, bands and how to pay LBTT.
How much you pay depends on the type and value of the property, for example if you are buying a house to live in, a second home or a commercial property. Support is available for first-time buyers in the form of first-time buyer relief.
To provide certainty to taxpayers, LBTT rates and bands will stay at the current level until 2026. First-time buyer relief will also remain in place.
How LBTT contributes to the economy
Devolved taxes like LBTT make up a large part of the Scottish budget.
The money raised helps to pay for public services like schools, health, and housing.
Revenue Scotland publishes statistics on LBTT.
The Scottish Fiscal Commission also produces forecasts on revenue from Land and Building Transaction Tax.
Bills and legislation
LBTT replaced UK Stamp Duty Land Tax in Scotland in 2015, following the passage of the Scotland Act 2012 and the Land and Buildings Transaction Tax (Scotland) Act 2013.
Additional Dwellings Supplement: review
Additional Dwelling Supplement (ADS) is an extra charge on additional properties like second homes, rental properties, and holiday homes.
Following a public consultation on ADS, we introduced changes to ADS legislation to help improve the outcomes for taxpayers which took effect from 1 April 2024.
These changes included:
- extending repayment timelines for the ADS to 36 months,
- updates to the 'joint buyer' provisions
- a new relief from LBTT and the ADS for local authorities purchasing affordable housing to meet local housing needs.
On 4 December 2024, the ADS rate changed from 6% to 8% with effect from 5 December 2024.
Transitional provisions will apply to transactions where missives were signed on or before 4 December 2024. In these cases, the previous rate of 6% will continue to apply.
Land and Building Transaction Tax: review
On 4 December 2024, it was announced that a review of LBTT legislation will take place in 2025.
The review will start in Spring 2025 and will look at the residential and non-residential LBTT arrangements to ensure the policy intent is still met. We will seek to engage extensively with taxpayers and stakeholders throughout.
The review will take place over the remainder of the current parliamentary term and will support decisions in the next Parliament on whether any legislative changes should be brought forward.