Glossary · UK
What is Land and Buildings Transaction Tax (LBTT)?
Scotland's property transaction tax, replacing SDLT since 2015, with rates set by Revenue Scotland and a 6% Additional Dwelling Supplement for second properties.
Full Definition
Land and Buildings Transaction Tax (LBTT) is the devolved property transaction tax in Scotland, introduced on 1 April 2015 to replace Stamp Duty Land Tax for Scottish transactions. It is administered by Revenue Scotland. Residential LBTT rates for 2026/27: 0% on the first GBP 145,000; 2% on GBP 145,001 to GBP 250,000; 5% on GBP 250,001 to GBP 325,000; 10% on GBP 325,001 to GBP 750,000; 12% above GBP 750,000. First-time buyer relief raises the 0% threshold to GBP 175,000, providing a saving of up to GBP 600. The Additional Dwelling Supplement (ADS) applies to purchases of additional residential properties (second homes, buy-to-let): 6% on the total purchase price (not just the portion above a threshold) from 5 April 2024. Non-residential LBTT rates: 0% up to GBP 150,000; 1% on GBP 150,001 to GBP 250,000; 5% above GBP 250,000. Mixed-use properties use non-residential rates. LBTT returns must be filed with Revenue Scotland within 30 days of the effective date of the transaction. ADS refunds are available if the previous main home is sold within 36 months of the new purchase (application to Revenue Scotland required). Scottish property transactions do not require SDLT returns to HMRC.