Stamp Duty In Scotland

Stamp Duty In Scotland – LBTT

Stamp Duty In Scotland – LBTT.

If you are buying a property or land in the uk, find out the stamp duty costs you will be paying using our free online stamp duty calculator.

What Is LBTT?

Land and Buildings Transaction Tax (LBTT) is a tax you pay when buying a residential property or land in Scotland over a certain price. You usually pay LBTT on increasing portions of the property price when you buy residential property.

Land and Buildings Transaction Tax must be paid on all properties costing more than £250,000, unless you’re a first-time buyer.

If you’re buying an additional property, you might have to pay an extra 4% on the total purchase price of the property, as well as the standard rates of LBTT.

LBTT applies to both freehold and leasehold properties and whether you’re buying outright or with a mortgage.

Use our Scottish LBTT Calculator to work out what you owe.

How Much Is LBTT?

There are several rate bands for Land and Buildings Transaction Tax (LBTT) which are calculated on the portion of the property purchase price falling within each band. The rate of Stamp Duty in Scotland for a main and only residence is:

Minimum Purchase Price

Maximum Purchase Price

Stamp Duty Rate*

£0

£145,000

£145,001

£250,000

£250,001

£325,000

£325,0001

£750,000

10%

Over £750,000

12%

* only applies only to the part of the property price falling within each band

Stamp Duty On A Second Home.

Buyers of additional residential properties in Scotaland will have to pay an extra 4% stamp duty on a second home costing more than £40,000. Due to the higher threshold where the Additional Dwelling Supplement does apply, the change to the starting threshold will also apply to property transactions. This means that a residential property transaction that is liable to the extra charge will not pay the standard rates of LBTT on the first £250,000 of the purchase but the additional 4% will remain payable on the total purchase price.

Minimum Purchase Price

Maximum Purchase Price

Stamp Duty Rate*

£0

£145,000

4%**

£145,001

£250,000

£250,001

£325,000

£325,0001

£750,000

14%

Over £750,000

16%

* only applies only to the part of the property price falling within each band ** There is 0% tax for additional dwellings purchased for less than £40k. For purchases from £40k and above 4% extra will be added to the standard rate.

Non Residential And Mixed Use Land.

There are also separate rules for what is termed ‘non-residential and mixed use land’, which includes commercial property such as retail units and offices, land used for agriculture and forestry, any non-residential land or six or more residential units that are bought in one transaction.

You pay SDLT on increasing portions of the property price (or ‘consideration’) when you pay: £150,000 or more for non-residential or mixed use land or property.

In some cases, it may be possible to claim relief and exemptions from SDLT, for example:

The purchase of multiple dwellings
A home bought by a building company
An employee’s home bought by his or her employer
A property bought by a local authority as a compulsory purchase
The transfer of a property from one company to another
Charities, right-to-buy or registered social landlords.