LBTT vs SDLT: What Scottish Property Buyers Pay in 2026/27
Scotland charges Land and Buildings Transaction Tax instead of Stamp Duty Land Tax. This comparison shows the key rate differences for residential buyers in 2026/27.
In this article we cover LBTT vs SDLT: What Scottish Property Buyers Pay in 2026/27 — practical, plain-English guidance from our Glasgow team.
Founder & CEO · Countify · Glasgow
Scotland uses Land and Buildings Transaction Tax (LBTT) rather than Stamp Duty Land Tax (SDLT). For residential purchases in 2026/27, LBTT has a nil-rate band up to £145,000, then 2% to £250,000, 5% to £325,000, 10% to £750,000, and 12% above. SDLT thresholds are higher but the rates differ significantly at mid-range prices.
LBTT residential rates for 2026/27
- Up to £145,000: 0% (nil-rate threshold).
- £145,001 to £250,000: 2%.
- £250,001 to £325,000: 5%.
- £325,001 to £750,000: 10%.
- Above £750,000: 12%.
SDLT residential rates for comparison (England and Northern Ireland)
- Up to £125,000: 0%.
- £125,001 to £250,000: 2%.
- £250,001 to £925,000: 5%.
- £925,001 to £1,500,000: 10%.
- Above £1,500,000: 12%.
Who benefits from LBTT?
Scottish buyers purchasing at lower price points benefit from the higher nil-rate threshold of £145,000 versus £125,000. At £200,000 a Scottish buyer pays £1,100 in LBTT compared with £1,500 in SDLT south of the border. However, at £400,000 LBTT costs £17,250 versus £10,000 SDLT, because the Scottish 10% band kicks in at £325,001 while England uses 5% up to £925,000.
First-time buyer relief
In Scotland, first-time buyers purchasing up to £175,000 pay no LBTT. Those buying between £175,001 and £250,000 can claim relief reducing the tax on the portion below £175,000. In England, first-time buyers have a nil-rate threshold of £300,000 (on purchases up to £500,000). Scottish first-time buyers at mid-range prices may therefore face a higher bill than their English counterparts.
The Additional Dwelling Supplement
Scottish buyers purchasing a second residential property must pay the Additional Dwelling Supplement on top of LBTT. The ADS rate is 8% of the total purchase price where the property costs more than £40,000. This significantly increases the tax cost for buy-to-let investors and those purchasing a second home in Scotland.
Use our stamp duty calculator to calculate the exact LBTT and ADS payable on any Scottish property purchase in 2026/27.