Stamp Duty in Scotland: Land and Buildings Transaction Tax (LBTT)
Scotland replaced UK stamp duty with its own tax in 2015. Here's how LBTT works and whether you can reclaim an overpayment.
What is Land and Buildings Transaction Tax?
LBTT replaced UK Stamp Duty Land Tax in Scotland on 1 April 2015. It is administered by Revenue Scotland (not HMRC) and applies to residential and non-residential property purchases in Scotland.
The tax works on a similar progressive band structure to SDLT but with different thresholds and rates. Each band is taxed at its own rate — you only pay the higher rate on the portion of the price within that band, not on the entire purchase price.
LBTT Residential Rates (2024/25)
| Band | Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| Over £750,000 | 12% |
Additional Dwelling Supplement (ADS): A 6% surcharge on the full purchase price applies for second homes and buy-to-let properties in Scotland (as of April 2024).
First-time buyers: There is no additional first-time buyer relief in Scotland — the nil-rate band already starts at £145,000 for all buyers.
Can You Claim an LBTT Refund in Scotland?
Yes — in certain circumstances. The most common refund scenario is the ADS (Additional Dwelling Supplement) refund: if you paid the 6% ADS because you owned another property at completion, but subsequently sold that previous main home within 18 months, you can claim the ADS back from Revenue Scotland. The claim must be made within 12 months of selling the previous property.
Other overpayment scenarios — such as uninhabitable property or chattel apportionment — also apply in Scotland, though the rules are administered by Revenue Scotland rather than HMRC. The principles are similar to those for second home stamp duty refunds in England.
Note: StampDutyBack currently connects buyers with specialists who handle England and Northern Ireland SDLT claims. For Scottish LBTT matters, we recommend contacting a Scottish solicitor or tax adviser directly.
How LBTT Differs from Stamp Duty (SDLT)
Who administers it
HMRC
Revenue Scotland
Nil-rate threshold
£250,000 (standard)
£145,000
Surcharge for second homes
5%
6% (ADS)
Frequently Asked Questions
Do I pay stamp duty if I buy a house in Scotland?
No — Scotland has its own tax called LBTT (Land and Buildings Transaction Tax), administered by Revenue Scotland. UK Stamp Duty Land Tax does not apply to Scottish property purchases.
What is the LBTT threshold in Scotland?
The nil-rate threshold is £145,000 for residential purchases. You pay no LBTT on the first £145,000 of the purchase price.
Can I get the Additional Dwelling Supplement back?
Yes, if you sold your previous main home within 18 months of completion, you can claim the ADS refund from Revenue Scotland within 12 months of that sale.
Does StampDutyBack handle Scottish LBTT claims?
StampDutyBack's specialist network currently covers England and Northern Ireland SDLT claims. For LBTT matters in Scotland, we recommend a Scottish tax solicitor.
Buying in England or Northern Ireland?
If your property is in England or NI, you may still be able to reclaim overpaid stamp duty.