Land and Buildings Transaction Tax (LBTT) is Scotland’s devolved tax on qualifying land and property transactions. It replaced Stamp Duty Land Tax (SDLT) in Scotland in 2015. The tax name, bands and reliefs are different from those in England, Northern Ireland and Wales, so a UK-wide guide or calculator may not give the right result for a Scottish purchase.
How the residential bands work
For a standard residential purchase, LBTT is calculated in slices: each rate applies only to the portion of the price within that band, not to the whole purchase price. For transactions in the 2026–27 tax year, the Scottish Government has kept the residential bands at their existing levels. The standard bands are 0% on the first £145,000; 2% on the portion from £145,001 to £250,000; 5% from £250,001 to £325,000; 10% from £325,001 to £750,000; and 12% on the portion above £750,000.
For example, the official Scottish Government’s published bands mean a £280,000 residential purchase falls into three standard slices: the first £145,000 is at 0%, the next £105,000 at 2%, and the remaining £30,000 at 5%. That example illustrates the band method only. It does not include reliefs, a linked transaction, an Additional Dwelling Supplement or any buyer-specific facts, so it should not be treated as a personal bill.
First-time buyer relief
A qualifying first-time buyer may receive relief that raises the residential nil-rate band from £145,000 to £175,000. Eligibility has conditions: the buyer must meet Revenue Scotland’s definition and intend to occupy the home as their only or main residence. Joint purchases and previous property ownership can affect eligibility. Check the official rules before including the relief in a calculation.
Additional Dwelling Supplement
The Additional Dwelling Supplement (ADS) is an extra charge that may apply when someone buys an additional residential property in Scotland. Revenue Scotland says the current rate for transactions with an effective date on or after 5 December 2024 is 8% of the relevant purchase price. Transitional provisions can preserve the former 6% rate for certain contracts entered into on or before 4 December 2024. Whether it applies depends on the buyer, the properties they own, the transaction and any exception or repayment rule. Do not assume that every second property is treated identically or that ADS is simply another residential band: check the official guidance for the exact facts and effective date.
Commercial property and leases have different LBTT bands and calculation rules. A residential table is not suitable for a commercial or mixed transaction. The effective date is usually completion, but substantial performance can affect timing. A conveyancer can confirm the date and file the return where instructed.
Check your own transaction
Use Revenue Scotland’s official Property Transactions Calculator. It asks for the effective date, property type, price and details such as ADS, linked transactions and first-time buyer relief. Those details can change the result. The calculator is a self-assessment tool, and Revenue Scotland does not accept liability for a user’s calculation; seek qualified advice if a transaction is complex or the tax treatment is uncertain.
This article was checked again on 4 November 2026 against Scottish Government 2026–27 budget guidance and Revenue Scotland’s calculator, ADS and first-time buyer guidance. Rates and eligibility can change. Confirm them again for the transaction date; this guide is general information, not tax or legal advice.
Official sources: https://revenue.scot/calculate-tax/calculate-property-transactions ; https://www.gov.scot/policies/taxes/land-and-buildings-transaction-tax/ ; https://revenue.scot/taxes/land-buildings-transaction-tax/additional-dwelling-supplement-ads