Land and Buildings Transaction Tax (LBTT)
You pay Land and Buildings Transaction Tax (LBTT) when you buy property or land in Scotland over a certain value. Most people know it as the tax paid when buying a house, but it also applies to commercial property and leases.
If you're buying an additional property, such as a second home, rental or holiday home, you may also pay the Additional Dwelling Supplement (ADS).
LBTT is Scotland's version of Stamp Duty Land Tax. The Scottish Government sets the rates, so changes announced by the UK Government do not apply in Scotland. Any changes to LBTT are usually announced in the Scottish Budget and must be approved by the Scottish Parliament.
How much you pay
We announced in the Scottish Budget 2026 to 2027 that all LBTT rates and bands, including the Additional Dwelling Supplement (ADS), will remain at their current levels.
Use the LBTT calculator on Revenue Scotland’s website to work out how much tax you may need to pay. How much you pay depends on:
- the type of property (residential or commercial)
- the property value
- whether it is a main home, second home or rental property
First-time buyers may qualify for relief.
LBTT review
We are reviewing LBTT, to look at how well the current system works for residential and commercial property. We will involve taxpayers and stakeholders throughout.
How LBTT supports public services
LBTT helps fund schools, health services and housing in Scotland.
Revenue Scotland publishes statistics on LBTT. The Scottish Fiscal Commission forecasts LBTT revenue.
Background
LBTT replaced UK Stamp Duty Land Tax in Scotland in 2015, following the Scotland Act 2012 and the Land and Buildings Transaction Tax (Scotland) Act 2013.