Land and Buildings Transaction Tax (LBTT), Scotland
LBTT is the Scottish equivalent of Stamp Duty, and is the tax charged by the Government in Scotland when you buy a home
What is LBTT?
Land and Buildings Transaction Tax (LBTT) is the tax charged by the Government in Scotland when you buy a home of more than £145,000.
Why do we have to pay it?
When you buy a property the change in land ownership has to be legally registered at the Land Registry. This process requires a certificate from Revenue Scotland – which they will only issue on receipt of the LBTT payment due on the purchase of the property.
The transfer of funds to pay the LBTT will be managed for you by your solicitor.
For homes over £145,000 there is no LBTT to pay on the first £145,000, then the following rates apply:
|
Purchase price |
LBTT rate |
|
£0 to £145,000 |
0% |
|
£145,001 to £250,000 |
2% |
|
£250,001 to £325,00 |
5% |
|
£325,001 to £750,000 |
10% |
|
Over £750,000 |
12% |
What if I'm a first time buyer?
If you are a first time buyer, there is no LBTT to pay on the first £175,000, then the following rates apply:
|
Purchase price |
LBTT rate |
|
£0 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% |
LBTT FAQs
-
In Scotland, LBTT does not need to be paid on a new property in Scotland if it is valued at £145,000 or below. Additionally, first time buyers are exempt from LBTT on a new property valued at £175,000 or below.
-
Yes, LBTT is required for first time buyers in Scotland if the property costs more than £175,000, however, you'll only pay tax on the portion above of the price above £175,000, so you still receive the relief on the first £175,000.
-
No, LBTT is not typically included in the mortgage payment. It is a one-time tax paid by the buyer on the purchase price of the property and is usually paid at the time of completion.
Our offers to help get you moving
Help to Sell Schemes
We have a range of schemes to help you sell your existing home.
Parent Power
Parents can also help. Typically they (or a close family member) could help you with your deposit, or guarantee your mortgage, or act as a joint applicant.
Low Deposit Schemes
If you have a low deposit, we have a variety of schemes to help make moving more affordable.
Key Worker Scheme
We could help make your move with our Key Worker Deposit Contribution Scheme.
Own New - Rate Reducer
Own New - Rate Reducer is a scheme available on new build homes that could mean lower mortgage rates and reduced monthly payments.
Part Exchange
We could be your guaranteed buyer. No stress or fuss, just an easy move for you and your family.
