Land and Buildings Transaction Tax (LBTT) is the tax Scottish buyers pay on a residential purchase. As of October 2026 the first £145,000 is at 0% for most buyers, rising to a 0% band of £175,000 for qualifying first-time buyers. Rates apply in slices, like income tax, so only the part of the price inside each band is taxed at that band's rate. Revenue Scotland collects the tax, and your solicitor normally files the return and pays it for you.
Residential rates and bands
| Part of the price | Standard rate | First-time buyer rate |
|---|---|---|
| Up to £145,000 | 0% | 0% |
| £145,001 to £175,000 | 2% | 0% |
| £175,001 to £250,000 | 2% | 2% |
| £250,001 to £325,000 | 5% | 5% |
| £325,001 to £750,000 | 10% | 10% |
| Over £750,000 | 12% | 12% |
These figures are as reported by consumer and property sources and were described as unchanged in the 2026 to 2027 Scottish Budget. Check Revenue Scotland before you rely on them, because rates are set annually. The Additional Dwelling Supplement, which adds a surcharge for second homes and buy-to-let, is covered in its own guide.
Worked examples
| Price | Standard LBTT | First-time buyer LBTT |
|---|---|---|
| £150,000 | £100 | £0 |
| £200,000 | £1,100 | £500 |
| £300,000 | £4,600 | £4,000 |
| £500,000 | £23,350 | £22,750 |
To see how one is built, take £300,000 as a standard buyer: nothing on the first £145,000, 2% on the next £105,000 (£2,100), and 5% on the final £50,000 (£2,500), giving £4,600. A first-time buyer pays the same bands but with the nil-rate band lifted to £175,000, which saves up to £600. The relief is a flat saving, not a percentage of the price, so it matters most for lower-priced homes where it can wipe out the bill entirely.
Who counts as a first-time buyer
First-time buyer relief generally goes to people who have never owned a residential property anywhere in the world, including a home inherited or owned jointly. When two or more people buy together, every buyer must meet the conditions or the relief is not available. Buying with a parent who already owns a home is a common way to lose it.
- Check this before you sign: ownership abroad and inherited shares can count.
- The relief applies to the standard main-home rates; it is separate from any First Homes Fund award.
- Ask your solicitor to confirm eligibility in writing when you instruct them.
Paying and filing
You must file an LBTT return and pay within 30 days of the date of entry. In practice your solicitor handles this and asks you to send the money with the rest of the purchase funds, so the tax belongs in your cash budget at settlement rather than being paid afterwards. The costs of buying a home in Scotland shows where it sits among the other costs.
Figures here are as of October 2026. If you are buying later, or exchanging near a Scottish Budget, check Revenue Scotland for the rates applying on your date of entry.
How Scotland compares with the rest of the UK
MoneyHelper notes that first-time buyers pay no LBTT on homes up to £175,000 in Scotland, compared with no Stamp Duty up to £300,000 in England and Northern Ireland (with a reduced rate between £300,001 and £500,000) and no Land Transaction Tax up to £225,000 in Wales. Each nation sets its own rates and they change, so do not compare headline thresholds alone. Compare the total tax on the price you would actually pay.
Common mistakes that change the bill
- Buying jointly with someone who has owned a home before, which can remove first-time buyer relief for the whole purchase.
- Assuming relief applies automatically. Your solicitor needs to claim it on the return.
- Forgetting that the tax is charged on the price paid, so a bidding war adds tax as well as price.
- Treating fixtures and fittings as a way to cut the bill without advice. Items negotiated separately, such as carpets or furniture, need a reasonable value, so ask your solicitor what is acceptable.
- Leaving the money until after settlement. Your solicitor will want to hold the funds to file and pay on time.
Tax rules also differ for commercial property, leases and mixed-use purchases, which are outside this guide. If your purchase is unusual, for example a flat above a shop or a property with land, ask your solicitor early how LBTT applies.
Before you bid, run your intended price and a price £10,000 higher through Revenue Scotland's calculator or ask your solicitor to do it. The marginal rates above £250,000 are 5% and then 10%, so each extra £10,000 in a bidding war adds between £500 and £1,000 in tax on top of the higher price, and that tax also has to be paid in cash.
This is general information, not tax or legal advice. For a figure on your own purchase, use Revenue Scotland's calculator or ask your solicitor.
Frequently asked questions
How much does first-time buyer relief save?
It lifts the nil-rate band from £145,000 to £175,000, which saves up to £600 on the tax bill.
Who pays LBTT and when?
The buyer pays. The return and payment are due within 30 days of the date of entry, and your solicitor normally handles it.
Does first-time buyer relief apply if I inherited a share of a home?
Usually not. Ownership of any residential property anywhere in the world can disqualify you, and all joint buyers must qualify.
Where can I check today's rates?
Revenue Scotland publishes current rates and a calculator, and rates are reviewed in each Scottish Budget.