Scotland gives first-time buyers a raised LBTT nil-rate threshold of £175,000, instead of the standard £145,000. This guide explains who qualifies, how much it can save, and how it compares with the first-time buyer relief available in England.
What the Relief Does
Land and Buildings Transaction Tax (LBTT) is Scotland's equivalent of Stamp Duty Land Tax. The standard nil-rate band covers the first £145,000 of a residential purchase price. For qualifying first-time buyers, the relief raises that nil-rate threshold to £175,000, meaning no LBTT is due on the first £175,000, with the standard 2% band then applying to the portion between £175,000 and £250,000.
Who Qualifies
To qualify, you must never have owned a dwelling anywhere in the world -- whether in the UK or abroad, alone or jointly -- and the Scottish property must become your only or main residence. Where two or more people buy together, every buyer must independently meet the first-time buyer condition; if any one of them has owned a home before, the whole purchase loses the relief.
Worked Example
A first-time buyer purchasing a flat for £200,000 without the relief would pay 0% on the first £145,000 and 2% on the £55,000 between £145,000 and £200,000, a bill of £1,100. With first-time buyer relief, 0% applies up to £175,000 and 2% applies only to the remaining £25,000 up to £200,000, giving a bill of £500 -- a saving of £600, which is the maximum benefit the relief can provide since it only affects the band between £145,000 and £175,000.
How to Claim
The relief is applied for as part of the standard LBTT return that must be submitted to Revenue Scotland within 30 days of the transaction completing. In practice, your solicitor or conveyancer handles this submission and selects first-time buyer relief on your behalf, so there is no separate claim form for you to complete.
Frequently Asked Questions
What is LBTT first-time buyer relief?
It is a relief that raises the nil-rate LBTT threshold from £145,000 to £175,000 for qualifying first-time buyers purchasing a home in Scotland, so first-time buyers pay no LBTT on the first £175,000 of the purchase price rather than the standard £145,000.
Who counts as a first-time buyer for LBTT purposes?
You must never have owned a dwelling anywhere in the world, either alone or jointly with someone else, and the property must be your only or main residence. If you are buying jointly, every buyer must meet the first-time buyer test -- if one buyer has owned a home before, the relief is not available to the purchase.
How much can the relief save?
The relief is worth up to £600 (2% of the extra £30,000 covered by the higher threshold), since LBTT is charged at 2% on the portion of the price between £145,000 and £250,000. Above £175,000, standard LBTT bands apply as normal on the rest of the price.
Show 5 more questionsShow fewer questions
Is there a price cap on the property to qualify?
No -- unlike some first-time buyer reliefs, there is no maximum purchase price for LBTT first-time buyer relief. The relief simply raises where the nil-rate band starts; buyers of higher-value homes still benefit from the raised threshold even though most of the price falls into higher LBTT bands.
How does this compare with England's SDLT first-time buyer relief?
England's SDLT relief exempts the first £300,000 for first-time buyers (with relief tapering out entirely above a £500,000 purchase price), which is a larger cash saving than Scotland's LBTT relief. Scotland's relief has no upper price cap, but the nil-rate portion is smaller in cash terms.
Do I need to claim the relief separately?
The relief is claimed as part of the LBTT return submitted for the transaction, usually by your solicitor or conveyancer, within 30 days of completion. You do not need a separate application -- your solicitor selects the first-time buyer relief box on the LBTT return if you qualify.
Does the Additional Dwelling Supplement (ADS) still apply to first-time buyers?
ADS should not apply to a genuine first-time buyer purchase of their only home, since ADS is charged on the purchase of an additional residential property when you already own another dwelling. If you already own a home elsewhere, you are not a first-time buyer and both ADS and the relief are irrelevant.
Can I get LBTT first-time buyer relief on a buy-to-let purchase?
No. The relief requires the property to be your only or main residence, so buy-to-let and second home purchases do not qualify regardless of whether you have owned a home before.
Disclaimer: This guide reflects Revenue Scotland LBTT rates and thresholds confirmed for 2026/27. This guide is for general information only and is not professional advice. Consult a qualified solicitor and refer to revenue.scot for current official guidance before relying on any treatment.
