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Land and Buildings Transaction Tax

The Land and Buildings Transaction Tax (LBTT) is a tax applied to residential and commercial land and buildings transactions (including commercial purchases and commercial leases) where a chargeable interest is acquired.

LBTT is administered by Revenue Scotland, with support from Registers of Scotland (RoS).

LBTT replaced UK Stamp Duty Land Tax in Scotland on 1 April 2015, following the passage of the Scotland Act 2012 and the subsequent Land and Buildings Transaction Tax (Scotland) Act 2013. This has since been amended through the use of primary and secondary legislation.

Rates, revenues and guidance

Tax is payable at different rates on each portion of the purchase price within specified tax bands. LBTT tax rates and bands for 2018 to 2019 financial year remain unchanged from 2017 to 2018. Detailed information, including worked examples, guidance on reliefs and exemptions, tax calculators based on current rates, and monthly revenues can be found on the Revenue Scotland website.

First-time buyer relief

From 30 June 2018, all first-time buyers in Scotland benefit from relief on LBTT. Alongside measures to increase housing supply, this makes it easier for people in Scotland to buy their first home.

The relief effectively raises the zero tax threshold for first-time buyers from £145,000 to £175,000. This means that around 80% of first-time buyers in Scotland will pay no LBTT at all, while those buying a property for more than £175,000 will receive relief on the portion of the price below the threshold and benefit from savings of up to £600.

We consulted on LBTT first-time buyers relief between February and March 2018, and made The Land and Buildings Transaction Tax (First-Time Buyer Relief) (Scotland) Order 2018 in June 2018.

Additional Dwelling Supplement

On the 1 April 2016 the LBTT Additional Dwelling Supplement (ADS) came into force, payable on the total purchase price of an additional dwelling of £40,000 or more. The ADS is charged at 3% of the total purchase price of the dwelling.

We introduced the supplement to ensure, as far as practical, that opportunities for first-time buyers to enter Scotland's housing market are as strong as they can be.