Land and Buildings Transaction Tax (LBTT) is Scotland's own property purchase tax — separate from England's SDLT and Wales's LTT, administered by Revenue Scotland. The Additional Dwelling Supplement (ADS) at 8% of the full purchase price is a key difference from all other UK nations. This guide covers everything you need. Part of our UK property and land tax hub.
Confirmed by the Scottish Government in the Scottish Budget 2026–27: all LBTT rates and bands, including the ADS, remain at their current levels for 2026/27. Source: gov.scot.
Per gov.scot's published guidance, LBTT replaced Stamp Duty Land Tax in Scotland from 1 April 2015 and is administered by Revenue Scotland — not HMRC. If you are buying a property in Scotland, SDLT does not apply. LBTT does. The Scottish Government confirmed in its 2026–27 Budget that all LBTT rates and bands remain unchanged for 2026/27.
| Purchase price portion | LBTT rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| Above £750,000 | 12% |
Source: gov.scot — Land and Buildings Transaction Tax. Confirmed unchanged for 2026/27 in the Scottish Budget.
Compare: same purchase in England (SDLT) = £7,500 (0% on £125k + 2% on £125k + 5% on £50k). Scotland is cheaper for standard buyers at this price point.
Use our free property tax calculator to calculate LBTT on any Scottish purchase price.
Per Revenue Scotland's published guidance, qualifying first-time buyers in Scotland receive an increased nil-rate band of £175,000 (versus the standard £145,000). All higher bands remain unchanged. The maximum tax saving from this relief is £600 — the 2% LBTT on the £30,000 between £145,000 and £175,000.
Unlike England's SDLT first-time buyer relief — which is withdrawn entirely if the property costs more than £500,000 — Scotland's FTB relief has no upper property price cap. A first-time buyer purchasing a £800,000 property in Scotland still receives the extended nil-rate band to £175,000 (saving £600). To qualify, neither you nor any joint buyer must have previously owned a residential property anywhere in the world.
Per Revenue Scotland's published guidance, the Additional Dwelling Supplement (ADS) applies when you purchase an additional residential property in Scotland while already owning one or more elsewhere. Unlike England's SDLT additional dwelling surcharge — which adds 5% on a band-by-band basis — Scotland's ADS is charged at 8% of the complete purchase price.
This is the single most important distinction between Scotland's ADS and England's SDLT surcharge. On a £300,000 additional property in Scotland: ADS = 8% × £300,000 = £24,000. In England, the SDLT surcharge on the same price would be applied band-by-band, resulting in approximately £15,000. The Scottish ADS is significantly more expensive for lower-value additional properties.
Compare: same purchase in England (SDLT) = 5% on £125k + 7% on £75k = £11,500. Scotland's ADS makes additional property purchases notably more expensive, particularly at lower price points.
Per Revenue Scotland's published guidance, if you pay ADS because you're buying a new main home before selling your previous one, you can claim a full ADS refund if you sell the previous main home within 36 months of completing the new purchase. The refund is claimed through Revenue Scotland, not HMRC. There are specific time limits for submitting the refund claim — check Revenue Scotland's guidance for current rules.
Our AI Tax Assistant can help you model whether ADS applies to your Scottish purchase and calculate the total liability — ask it about your specific situation.
LBTT is filed through Revenue Scotland's SETS (Scottish Electronic Tax System) portal within 30 days of the effective transaction date. Your solicitor handles this. The LBTT return is entirely separate from HMRC's GOV.UK systems — there is no overlap.
Full LBTT guidance, the filing portal, and ADS refund forms are all at revenue.scot/land-buildings-transaction-tax. This is a separate platform from GOV.UK entirely.
ADS at 8% of the full price, FTB relief with no cap, and Revenue Scotland's separate filing system create complexity most English-focused advisers aren't familiar with. Our matching service connects you with LBTT specialists who handle Scottish transactions daily.
Find a Scottish property tax expert →The most frequently asked questions about LBTT and ADS in Scotland 2026/27.
Free guidance, a property tax calculator, and expert matching — all in one place. For ADS calculations and Revenue Scotland compliance, our specialists are one click away.
Guidance, not advice. Based on Revenue Scotland and gov.scot published rules for 2026/27. Always verify at revenue.scot before completing a Scottish property transaction.
