LBTT First-Time Buyer Relief in Scotland 2026/27: A Step-by-Step Guide
A clear 2026/27 guide to LBTT First-Time Buyer Relief in Scotland: who qualifies, the GBP 175,000 nil-rate band, how to claim it, and a worked example.
Quick answer
LBTT First-Time Buyer Relief lets eligible first-time buyers in Scotland pay no Land and Buildings Transaction Tax on the first GBP 175,000 of a home, instead of the standard GBP 145,000 nil-rate band. The benefit is capped at GBP 600, and you keep paying normal LBTT rates on anything above the threshold. It is claimed automatically on the LBTT return at completion, so you do not apply separately.
How the relief works
Land and Buildings Transaction Tax replaced Stamp Duty in Scotland and works on a slice (progressive) basis. Standard residential LBTT charges 0% up to GBP 145,000, then 2% from GBP 145,001 to GBP 250,000, 5% from GBP 250,001 to GBP 325,000, 10% to GBP 750,000, and 12% above that.
First-Time Buyer Relief does one simple thing: it lifts the 0% band from GBP 145,000 to GBP 175,000. The extra GBP 30,000 of nil-rate band that would otherwise be taxed at 2% is worth exactly GBP 600 (GBP 30,000 x 2%). That GBP 600 is the most anyone can save, whether the home costs GBP 180,000 or GBP 1,000,000.
Who qualifies
To claim the relief you must be a genuine first-time buyer. That means:
- You have never owned, or part-owned, a dwelling anywhere in the world.
- This includes inherited and gifted property, not just homes you bought.
- You intend to occupy the property as your only or main residence.
The "anywhere in the world" rule is strict. If you once inherited a quarter share of a relative's flat, or you owned a property abroad before moving to Scotland, you are not a first-time buyer for LBTT, even if you never lived there.
For joint purchases, the test applies to every buyer. If you are buying with a partner, a sibling or a friend and any one of them has owned property before, the whole transaction loses the relief. This catches many couples by surprise, so check both buyers' full property histories before assuming you qualify.
A worked example
Imagine you are a first-time buyer purchasing a home in Glasgow for GBP 250,000.
- Without relief: 0% on GBP 145,000, then 2% on the GBP 105,000 up to GBP 250,000 = GBP 2,100.
- With first-time buyer relief: the nil band rises to GBP 175,000, so you pay 2% on only GBP 75,000 (from GBP 175,000 to GBP 250,000) = GBP 1,500.
The relief saves you GBP 600, as expected. A simpler way to think about it is to calculate LBTT normally and subtract GBP 600.
If your home costs GBP 175,000 or less, the relief wipes out your LBTT entirely. To model different prices, use our
LBTT Calculator — Scotland
Calculate Land and Buildings Transaction Tax (LBTT) for property purchases in Scotland, including first-time buyer relief and Additional Dwelling Supplement (ADS).
Open LBTT Scotland calculatorMortgage Affordability Calculator
Find out how much you could borrow based on your income and outgoings.
Open Mortgage Affordability calculatorClaiming the relief and avoiding ADS
You do not fill in a separate application. Your solicitor or conveyancer submits an LBTT return to Revenue Scotland, usually on the day of completion, and applies the First-Time Buyer Relief code. The reduced charge is built straight into the return, so tell your solicitor early that you are a first-time buyer.
One trap to watch is the Additional Dwelling Supplement (ADS), an 8% surcharge that applies when a buyer owns another dwelling at completion. As a genuine first-time buyer with no other property, ADS does not apply and you keep the GBP 175,000 nil-rate band. The two situations rarely overlap, because owning another dwelling would disqualify you from the relief anyway. Still, confirm your position before completion to avoid an unexpected 8% bill.
Devolved note: Scotland, England and Wales differ sharply
Property transaction tax is fully devolved, so where you buy matters enormously.
- Scotland (LBTT): first-time buyer nil band of GBP 175,000, capped saving of GBP 600.
- England and Northern Ireland (SDLT): first-time buyer relief gives 0% up to GBP 300,000, a far more generous break worth up to several thousand pounds.
- Wales (LTT): no first-time buyer relief at all; everyone pays the standard rates.
So a first-time buyer purchasing an identical GBP 280,000 home pays GBP 2,700 in Scotland (GBP 3,300 standard LBTT minus GBP 600), but nothing in England under SDLT first-time buyer relief. If you are comparing options across the border, our
Stamp Duty Calculator
Calculate Stamp Duty Land Tax (SDLT) for your property purchase in England.
Open Stamp Duty calculatorCommon mistakes to avoid
- Assuming a partner's past ownership does not matter. It does, and it removes the relief for the whole purchase.
- Forgetting inherited or overseas property in your history.
- Expecting the relief to cover the full price above GBP 175,000. It only widens the zero band.
- Buying a property you will not live in. The relief requires it to be your only or main residence, so it does not apply to buy-to-let or second homes.
Get your first-time buyer status confirmed in writing with your solicitor before you exchange, so the relief is applied correctly and you pay exactly the right amount of LBTT.
Frequently asked questions
How much LBTT First-Time Buyer Relief can I claim in 2026/27?
The relief raises the LBTT nil-rate band from the standard GBP 145,000 to GBP 175,000 for qualifying first-time buyers. You therefore pay no LBTT on the first GBP 175,000 of the purchase price, saving up to GBP 600 in tax. Above GBP 175,000 you still pay LBTT at the normal residential rates on the portion exceeding the threshold, so the maximum benefit is fixed at GBP 600 regardless of how expensive the property is.
Who counts as a first-time buyer for LBTT relief?
You qualify if you have never owned, or part-owned, a dwelling anywhere in the world, including inherited or gifted property, and you intend to occupy the home as your only or main residence. If you buy jointly, every buyer must meet the first-time buyer test. Having previously owned a buy-to-let, or even a share of an inherited house, disqualifies you, even if you never actually lived in it.
Do I still pay LBTT if my home costs more than GBP 175,000?
Yes. The relief only removes LBTT on the first GBP 175,000. On a GBP 250,000 home you pay nothing up to GBP 175,000, then 2% on the slice from GBP 145,000 to GBP 250,000 that sits above the relief threshold, and 5% on the slice above GBP 250,000 where relevant. In practice you compute LBTT normally and deduct GBP 600, so a GBP 250,000 first-time purchase costs GBP 1,500 instead of GBP 2,100.
How do I actually claim the relief?
You claim it on the LBTT return that your solicitor or conveyancer submits to Revenue Scotland, normally on the day of completion. There is a specific code on the return for First-Time Buyer Relief. You do not apply separately or wait for a refund; the lower charge is built into the return. Make sure you tell your solicitor early that you are a first-time buyer so the relief is applied and the correct amount is paid.
Does LBTT relief apply if I am buying with a partner who has owned before?
No. For joint purchases, every buyer must be a first-time buyer for the relief to apply. If your partner has previously owned or part-owned any dwelling, the whole transaction loses First-Time Buyer Relief and standard LBTT rates apply with the GBP 145,000 nil-rate band. This catches many couples, so check both buyers' histories, including inherited shares and overseas property, before assuming you qualify.
How does Scottish LBTT compare with Stamp Duty in England?
LBTT is the devolved Scottish equivalent of Stamp Duty Land Tax. The nil-rate band differs: standard residential LBTT starts at GBP 145,000, rising to GBP 175,000 with First-Time Buyer Relief, capped at GBP 600 saving. In England and Northern Ireland, SDLT for first-time buyers is 0% to GBP 300,000, a far larger relief. Wales uses LTT and offers no first-time buyer relief at all, so your tax depends heavily on where you buy.
Do I pay the Additional Dwelling Supplement as a first-time buyer?
Normally no. ADS is an 8% surcharge on buyers who already own another dwelling at completion. As a genuine first-time buyer with no other property, ADS does not apply, and you keep the GBP 175,000 nil-rate band. However, if you somehow retain another dwelling you are not a first-time buyer anyway, so the two reliefs rarely overlap. Always confirm your position with your solicitor before completion to avoid an unexpected 8% charge.
Try the calculators
LBTT Calculator — Scotland
Calculate Land and Buildings Transaction Tax (LBTT) for property purchases in Scotland, including first-time buyer relief and Additional Dwelling Supplement (ADS).
Mortgage Affordability Calculator
Find out how much you could borrow based on your income and outgoings.
Stamp Duty Calculator
Calculate Stamp Duty Land Tax (SDLT) for your property purchase in England.
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