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Before You ApplyEducational mortgage-readiness preparation

Planning · 7 min read

LBTT for first-time buyers in Scotland

In short

This page covers Scotland. Scotland does not have Stamp Duty Land Tax; it has Land and Buildings Transaction Tax, administered by Revenue Scotland. Residential LBTT is charged on a progressive slice basis: nothing up to £145,000, 2% from £145,001 to £250,000, 5% from £250,001 to £325,000, 10% from £325,001 to £750,000 and 12% above £750,000, as in force from 1 April 2021. A qualifying first-time buyer's relief raises the nil-rate threshold from £145,000 to £175,000, relieving up to £600. LBTT is a self-assessed tax: getting the return and the amount right is the buyer's responsibility, normally handled through a solicitor.

Who this is for

  • First-time buyers purchasing in Scotland
  • Anyone budgeting the cash needed for a Scottish purchase
  • People who have read about stamp duty and want the Scottish position

Key points

Scotland has LBTT, not SDLT

Land and Buildings Transaction Tax is a devolved Scottish tax administered by Revenue Scotland. GOV.UK's own home-buying guidance states that different rules apply in Scotland.

The bands work on a slice basis

Each rate applies only to the part of the price falling inside its band, not to the whole price. Revenue Scotland's published residential bands, in force from 1 April 2021, are 0% to £145,000, then 2%, 5%, 10% and 12%.

First-time buyer relief raises the nil-rate threshold

Revenue Scotland states that a qualifying first-time buyer will not pay LBTT on the first £175,000, increasing the nil-rate threshold from the standard £145,000 and potentially relieving up to £600.

The relief is capped, which surprises people

Because it works by moving a threshold, the maximum benefit is £600. It is worth having and it is not transformative. Budget accordingly.

Whether you qualify is Revenue Scotland's definition

The qualifying conditions for first-time buyer relief are set by Revenue Scotland and depend on your circumstances. We cannot decide whether you qualify and we do not try.

It is self-assessed

Revenue Scotland is clear that LBTT is a self-assessed tax and does not accept liability for calculator output. That applies to our calculator too, which is why every figure it produces is labelled illustrative.

The Additional Dwelling Supplement is separate

ADS is charged at 8% for transactions with an effective date on or after 5 December 2024, and is subject to conditions and exceptions including for buyers replacing their only or main residence. Whether it applies to you is a question for Revenue Scotland's guidance and your solicitor.

Exceptions and things that vary

  • Scotland only. If you are buying in England, Wales or Northern Ireland, a different tax applies.
  • Bands and reliefs change. Every figure on this page was checked against Revenue Scotland on 30 August 2026 and is held in one place in our configuration so it can be updated.
  • This page does not tell you what your LBTT will be. That is a self-assessment, normally handled by your solicitor.

How to work through it

  1. Work out the tax on the price you are actually considering

    Our suggestion: use our Scottish cash calculator, which shows the per-band arithmetic so you can check it against Revenue Scotland yourself.

  2. Check the first-time buyer conditions at source

    Our suggestion: read Revenue Scotland's first-time buyer relief guidance rather than relying on a summary, including ours.

  3. Treat the tax as cash, separate from your deposit

    Our suggestion: LBTT is money you need in addition to your deposit, alongside legal fees and any survey you commission.

  4. Ask your solicitor about ADS if there is any chance it applies

    Our suggestion: if you will own more than one dwelling at the end of the day of the transaction, ask. The conditions and exceptions are not something to guess at.

  5. Confirm the figure before you commit to anything

    Our suggestion: your solicitor deals with the return. Confirm the actual amount with them rather than with any calculator.

Illustrative example (not a real case)

Imagine a purchase at £190,000 by someone who qualifies for first-time buyer relief. On the standard bands, tax is due on the slice above £145,000; with the relief, the nil-rate threshold moves to £175,000, so tax is due only on the slice above that. The difference in this example is the £600 cap on the relief. The arithmetic is what matters — the actual figure is a self-assessment for your solicitor. Illustrative only.

Illustrative only. Figures and situations in examples are made up to show a method. They are not typical, not a benchmark and not a prediction of any outcome.

What not to assume

  • Do not assume Stamp Duty Land Tax rates or reliefs apply in Scotland. They do not.
  • Do not assume you qualify as a first-time buyer for LBTT purposes without reading Revenue Scotland's conditions.
  • Do not assume the relief is larger than £600.
  • Do not assume ADS does not apply to you simply because you consider the purchase your home.
  • Do not assume any calculator, including ours, produces a figure you can rely on for a return.

Questions for a qualified adviser

We cannot answer these for you, and we do not introduce or recommend advisers. Take them to a suitably qualified FCA-authorised mortgage adviser of your own choosing.

  • Roughly how much cash should I budget for tax and fees on a purchase at this price?
  • Should I be asking my solicitor about the Additional Dwelling Supplement?
  • How does the tax fit into the total cash I need alongside my deposit?

Work out my loan-to-value

Loan-to-value from a property value and a loan amount. Educational arithmetic only.

Work out my loan-to-value

Related reading

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Optional educational preparation resources. Nothing here is mortgage advice, a lender or product recommendation, an eligibility assessment or a prediction of whether an application would be accepted.

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Sources

No statistic, regulator citation or third-party claim is published until its source is verified. Unverified entries are shown as placeholders.

Written by

Before You Apply editorial

Written by the publisher's editorial function, not by a named individual and not by a mortgage adviser. Before You Apply is not FCA authorised.

Reviewed by

Independent reviewer — to be appointed

No independent reviewer has been appointed yet. No review, qualification, FCA status or endorsement is claimed for this content.

  • Last fact-checked 2026-08-30
  • Not yet independently reviewed
  • Next review due 2027-02-28

Disclosure: this guide is educational. Before You Apply receives no payment for mentioning any lender, product or firm, and none are named.

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