What LBTT will I pay on a £300,000 home in Scotland in 2026/27 and how do the bands work?

Full answer

LBTT is Scotland's equivalent of Stamp Duty Land Tax, applied to residential purchases instead of SDLT. Like SDLT, it works on a progressive slice (or "slab-free") basis: each rate applies only to the portion of the price within that band, not to the whole amount. For a standard main residence the residential bands are 0% up to £145,000, 2% from £145,000 to £250,000, 5% from £250,000 to £325,000, 10% from £325,000 to £750,000, and 12% above £750,000. On a £300,000 home the calculation is: nothing on the first £145,000; 2% on the next £105,000 (£145,000 to £250,000) = £2,100; and 5% on the final £50,000 (£250,000 to £300,000) = £2,500. That gives a total LBTT bill of £4,600, an effective rate of about 1.53%. First-time buyers in Scotland get relief that raises the nil-rate threshold to £175,000, saving up to £600; at £300,000 a first-time buyer would pay £600 less than the figure above, so £4,000. If this is a second home or buy-to-let, the Additional Dwelling Supplement (ADS) of 8% applies to the entire purchase price on top of standard LBTT — that's £24,000 extra on a £300,000 property, taking the total to £28,600. By comparison, in England and Northern Ireland this purchase would attract SDLT, and in Wales it would attract Land Transaction Tax (LTT), both with different bands and thresholds. LBTT is collected by Revenue Scotland and is normally due within 30 days of the effective transaction date, with your solicitor usually filing the return and paying on your behalf.

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