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Stamp Duty News
Stamp duty for first time buyers has been abolished for most purchasers.
Stamp duty for buy to let property has increased substantially from April 2016.
Stamp duty for second homes also attracts a 3 percent surcharge from April. Mobile homes, caravans and houseboats are exempt.
Stamp duty refunds are available for home movers replacing their main residence. The original home must be sold within 3 years.
Stamp duty calculations are different in England and Northern Ireland to LBTT calculations in Scotland and LTT calculations in Wales.
Stamp Duty Rates in Scotland
Stamp duty in Scotland has been replaced with Land and Buildings Transaction Tax (LBTT).
Stamp duty in Scotland
The Scottish LBTT system is broadly based on the existing SDLT scheme. LBTT rates increase in line with property price and LBTT rate thresholds have been introduced with clear demarcation between the different bands.
LBTT rates in Scotland
New LBTT rates were introduced from April 2015. Under the new LBTT system buyers pay tax on amounts between bands, not on the full purchase price of a property.
Taxation rates in the rest of the UK are different to the LBTT rates in Scotland.
What are the current LBTT Rates?
The current Land and Buildings Transaction Tax rates are shown in the table below:
| Tax Band | Normal Rate | Additional Dwelling * |
|---|---|---|
| less than £145k | 0% | 6%** |
| £145k to £250k | 2% | 8% |
| £250k to £325k | 5% | 11% |
| £325k to £750k | 10% | 16% |
| rest over £750k | 12% | 18% |
|
* Percentage figures show LBTT and ADS rates combined. ADS is calculated in addition to LBTT and is applied at 6% to the total purchase price above £40k. ** An additional dwelling purchased for less than £40k will attract 0% tax. For purchases from £40k to £145k the rate will be 6% on the full purchase price. |
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For a single property purchase, no tax will be paid on the first £145,000. Between £145,000 and £250,000 buyers will pay 2% within this band, 5% on the portion between £250,000 and £325,000, 10% within the next band up to £750,000 and 12% over that.
Full details including LBTT rates for non residential property can be found on our LBTT rates page.
LBTT for buy to let and second homes
An "Additional Dwelling Supplement" was introduced in April 2016 and this now applies to all transactions involving the purchase of an additional property. Additional property types include buy to let investments and second homes.
In line with the rest of the UK, the surcharge applies to the full purchase price above an initial threshold of £40,000. From 16th December 2022 the Additional Dwelling Supplement has increased from 4% to 6%.
Please refer to our additional dwelling supplement page for more information.
LBTT for first time buyers
The Scottish Government introduced LBTT first time buyers relief from June 2018, the new thresholds are shown in the table below.
| Tax Band | First Time Buyer Rate |
|---|---|
| less than £175k | 0% |
| £175k to £250k | 2% |
| £250k to £325k | 5% |
| £325k to £750k | 10% |
| rest over £750k | 12% |
| The Scottish Government introduced first time buyer relief from June 2018. | |
By increasing the initial LBTT threshold for first time buyers to £175k, the Scottish Government predict the majority of first time buyer transactions will attract no tax.
First time purchases above £175k will also benefit from the first time buyers relief on the portion below the £175k threshold.
Please refer to our LBTT first time buyer page for more information.
How much LBTT will be payable?
The LBTT calculators below indicate how much tax will be payable for both single and additional freehold residential property purchases in Scotland.
LBTT calculations are also now available for first time buyers following the introduction of LBTT first time buyer relief from June 2018.
