Land and Buildings Transaction Tax (Scotland)

How much tax will you have to pay when buying a property in Scotland, Wales, England and Northern Ireland?

You have to pay Stamp Duty Transaction Tax (SDTT) when buying a property in the UK over a certain price. This is charged on all purchases of houses, flats and other land and buildings.

The tax is different if the property or land is in:

Land and Buildings Transaction Tax – Scotland 

Land and Buildings Transaction Tax replaced stamp duty on 1st April 2015. You will only pay the rate of tax on the part of the property price within each tax band. (This is similar to how income tax is calculated).

Purchase Price or Transfer Value Stamp Duty Rate
Up to £145,000 0%
Over £145,001 to £250,000 2%
Over £250,001 to £325,000 5%
Over £325,001 to £750,000 10%
£750,000 and over 12%

Example:

If the purchase price is above the nil rate tax band of £145,000, LBTT is charged at the appropriate rate on the amount of the chargeable consideration within the relevant bands. For example, a house bought for £280,000 is charged at:

  • 0% for the first £145,000, then
  • 2% for the next £105,000
  • 5% for the next £30,000 and
  • so £3,600 must be paid in LBTT

Consideration genuinely attributable to moveable property is not included within chargeable consideration. Moveable property includes fixtures and fittings eg. curtains and furniture.

Stamp Duty Land Tax – England and Northern Ireland

First Time Buyers

You are eligible if you and anyone else you’re buying with, are first-time buyers and purchasing a property up to £500,000.

Band First Time Buyer
Up to £300,000 0%
£300,001 and £500,000 5%

Standard Residential and 2nd Home

Since 4th December 2014, you will only pay the rate of tax on the part of the property price within each tax band. (This is similar to how income tax is calculated). 

From 1 April 2016, the Buy-to-let/second home rates were introduced and are 3 percentage points above the current SDLT (Stamp Duty Land Tax) residential rates. They are also charged on the portion of the value of the property that falls into each band.

Band Standard Rate Buy-To-Let/2nd Home
Up to £125,000 0% 3%
£125,001 to £250,000 2% 5%
£250,001 to £925,000 5% 8%
£925,001 to £1,500,000 10% 13%
£1,500,000 and over 12% 15%

Example:
If you buy a property for £275,000, you’ll pay £3,750 of Stamp Duty. This is made up of:

  • nothing on the first £125,000
  • £2,500 on the next £125,000
  • £1,250 on the remaining £25,000

Land Transaction Tax – Wales

Purchase Price or Transfer Value Stamp Duty Rate
Up to £180,000 0%
Over £180,001 to £250,000 3.5%
Over £250,001 to £400,000 5%
Over £400,001 to £750,000 7.5%
£750,000 to £1,500,000 10%
£1,500,000 and above 12%

For example, if you buy a house to which the main residential rates apply for £260,000, you will pay 0% on the first £180,000, 3.5% on the next £70,000 and 5% on the final £10,000 – the total LTT will be £2,950.

Non-residential property transactions – LBTT rates and bands

For non-residential property transactions, the rate of tax is determined in the same manner as for residential property transactions but by reference to different rates and bands. For further help or advice please complete the form on this page.

Additional Dwelling Supplement

For an Additional Dwelling Supplement is applied on purchases of additional residential properties (such as buy-to-let properties and second homes). For further help or advice please complete the form on this page.

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