LBTT, or Land and Buildings Transaction Tax, is the tax paid when buying property or land in Scotland above a price threshold. It replaced UK stamp duty in Scotland in 2015 and is charged in progressive bands administered by Revenue Scotland.
In one line: LBTT is Scotland's banded property purchase tax, replacing UK stamp duty north of the border.
How LBTT works
The residential nil rate band covers the first 145,000 GBP, then 2% to 250,000 GBP, 5% to 325,000 GBP and higher rates above (Revenue Scotland, 2026-27). Each band's rate applies only to the portion within it.
On a 250,000 GBP home, no tax applies to the first 145,000 GBP and 2% on the next 105,000 GBP is 2,100 GBP, giving 2,100 GBP due. First-time buyer relief lifts the nil rate band to 175,000 GBP (Revenue Scotland, 2026-27).
An Additional Dwelling Supplement of 8% applies to second homes and buy-to-lets (Revenue Scotland, 2026-27).
LBTT vs stamp duty
LBTT applies only in Scotland. Stamp Duty Land Tax covers England and Northern Ireland, and the two have different thresholds and band structures.
Both are progressive, charging each rate only on the slice of price within its band. Revenue Scotland collects LBTT, and the tax is normally paid by the buyer's solicitor within 30 days of the purchase completing.
Primary source: Revenue Scotland: LBTT residential property