Stamp Duty Calculator Scotland 
Calculation Table
| Effective Rate = 0% |
|---|
| Tax Band | % | Taxable Sum | Tax |
|---|---|---|---|
| less than £145k | 0 | ||
| £145k to £250k | 2 | ||
| £250k to £325k | 5 | ||
| £325k to £750k | 10 | ||
| rest over £750k | 12 |
Land and Buildings Transaction Tax (LBTT)
Land and Buildings Transaction Tax (LBTT) applies to residential, commercial and mixed-use property (and land) purchases as well as non-residential lease transactions.
LBTT replaced the UK Stamp Duty taxation system in April 2015.
Paid within 30 days after the sale completes, similar to current Stamp Duty (SDLT) calculations in England, Wales and Northern Ireland, rates increase in line with the agreed purchase price. Open market, auction, private, off-market and portfolio property buyers must all pay this tax.
The amount of payable LBTT is only applied as a percentage of part of the price above each band (or threshold) and up to the next band. Note that LBBT is not payable on removable fixtures or fittings (chattels) such as kitchen appliances, freestanding wardrobes, carpets and curtains.
We would recommend confirming the amount payable with a conveyancing solicitor when the missives are concluded (at the latest). Bar exceptional circumstances, they will organise the LBTT transfer to Revenue Scotland.
LBTT for Residential Properties
This is the most common way stamp duty is levied in Scotland.
When buying a house or a flat for residential purposes, LBTT is due on increasing portions of the property. Any purchase below the lowest threshold (currently set at £145,000) will not incur tax.
Below are the latest bands and rates:
This tax is due if the property is under construction or conversion (from commercial to residential, for example). The above LBTT rates must also be paid if the building is being used for any kind of student or armed forces accommodation.
Bar some examples, an LBTT return must be sent if a property is sold for over £40,000 (even if no tax is due).
Scotland First Time Buyer Relief
Introduced in 2018, first-time buyers anywhere in Scotland for residential properties up to the value of £175,000 benefit from a 0% LBTT rate. This represents savings of up to £600.
| Property Price | LBTT Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| £750,001+ | 12% |
LBTT on Residential Property with Additional Dwelling Supplement (ADS)
Similar to the Stamp Duty surcharge in England and Northern Ireland, extra LBTT is due on second properties – such as buy-to-let purchases and holiday homes. This is known as the Additional Dwelling Supplement or ADS.
This further layer of tax is due should the buyer already own one or more residential properties.
ADS is also due for purchases by companies, partnerships or other “non-natural” persons.
Additional Dwelling Supplement (ADS) Rates
The Additional Dwelling Supplement for any properties stands at 6% (increased from 4% on 15th December 2022).
As shown above, there is no tax due on property purchases at up to £40,000. Note that this lower threshold does not apply where the sale involves over 6 properties as part of the same portfolio transaction.
Always consult a qualified conveyancing solicitor to clarify any matters here.
Is ADS due if I’m replacing my main residence but end up owning 2 properties?
The short answer is no.
However, ADS will be due if you have not sold your main residence on the day you buy your new property.
You will then need to apply for an ADS refund through Revenue Scotland within 18 months.
Existing agents can do this via the SETS portal and new agents via the Repayment Claim Form. Or you can do it yourself via the online repayment claims process.
Stamp Duty on Non Residential Property in Scotland
LBTT is levied on rising proportions of a non-residential property’s sales price over the value of £150,000.
Non-residential property includes land, mixed-use and commercial property as well as where the sale involves 6 or more residential properties as part of a single transaction.
In additional to shop and office acquisitions, care / childrens homes, drug / alcohol rehabilitation centres, student halls of residence, hospitals / hospices, prisons, forests, agricultural land (used as a working farm) and hotels also incur non-residential LBTT.
Non-residential LBTT rates and thresholds on transactions after 25th January 2019:
| Purchase Price | LBTT Rate |
|---|---|
| Up to £150,000 | 0% |
| £150,001 to £250,000 | 1% |
| Above £250,000 | 5% |
LBTT is levied on the chargeable amount within each threshold. For example, if a non-residential property is purchased for £550,000 there would no charge on the first £150,000. There will be a 1% charge on the next £100,000 (the second band) and then a 5% charge on the remainder £300,000. Here, the total amount of LBTT due would be £16,000.
LBTT on Commercial Property Leases
Land and Buildings Transaction Tax (LBTT) is also applicable to commercial property leases – payable by the tenants (lessees).
The amount of LBTT due will depend on the amount of rent and lease premiums (chargeable consideration) being paid.
LBTT on Non-Residential Rent
Revenue Scotland last updated rates and bands in early 2020.
Commercial lease LBTT rates and thresholds on transactions after 7th February 2020:
| NPV of Rent Due | Rate of Applicable Tax |
|---|---|
| Up to £150,000 | 0% |
| £150,000 to £2 million | 1% |
| Above £2 million | 2% |
LBTT on Lease Premiums
If there are extra charges in addition to rent – typically lease premium payments – the standard tax rates and bands for commercial property acquisitions apply.
Please note the following
- If the average rent is set at a minimum of £1,000 per annum, the 0% tax band does not apply in relation to the premium. These payments will be taxed at the rate of the next threshold;
- The LBTT tax return must be submitted by the tenant (and not the landlord).
