Scotland – Land and Buildings Transaction Tax (LBTT)

Land and Buildings Transaction Tax (LBTT) is a tax paid when you buy or lease property or land in Scotland.

For residential properties, Land and Building Transaction Tax applies to any properties that cost more than £145,000, the cost of which is based on the total value of the property and pre-set tax rate bands. First-time buyers, assuming they meet the criteria, can get LBTT relief where the tax is only payable on properties worth more than £175,000.

When purchasing a second home or a buy-to-let property, you’ll have to pay an extra 4% of Land and Building Transaction Tax on top of current rates if the property costs more than £40,000. This is calculated based on the property value and pre-set tax rate bands.

For commercial properties, Land and Building Transaction Tax applies to the purchase of properties that cost more than £150,000. The LBTT for commercial properties that cost more than £150,000 is calculated based on the property value and pre-set tax rate bands.