Answers · UK 2025/26
How does LBTT differ from SDLT?
SDLT applies in England and Northern Ireland, LBTT in Scotland. LBTT has lower starting thresholds (£145,000 vs £125,000) but steeper upper bands (12% above £750,000 vs 12% above £1.5m for SDLT). Scotland's second-home supplement is 6%, higher than the SDLT 5% surcharge.
Full answer
Both taxes are charged in progressive bands on the portion of the price in each band. Key differences for 2025/26: SDLT (rUK, excl. Wales) nil-rate £125,000, 2% to £250,000, 5% to £925,000, 10% to £1.5m, 12% above. LBTT (Scotland) nil-rate £145,000, 2% to £250,000, 5% to £325,000, 10% to £750,000, 12% above. First-time buyer relief: SDLT 0% to £300,000 on properties up to £500,000; LBTT 0% to £175,000 with no upper cap. Additional-property surcharge: SDLT 5% (April 2025); LBTT ADS 6%. Wales uses a third system called LTT with a £225,000 nil-rate band and no first-time-buyer scheme. All three are payable to different authorities — HMRC (SDLT), Revenue Scotland (LBTT), Welsh Revenue Authority (LTT) — and the conveyancer normally handles the return within 14 (SDLT) or 30 (LBTT/LTT) days of completion.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.