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What is LBTT- Land and Buildings Transaction Tax

20th May, 2026

What Is LBTT When Buying a New Home?

LBTT is Land and Buildings Transaction Tax, which is the Scottish version of stamp duty. Buyers pay LBTT when purchasing a property over a certain value.

Understanding LBTT is an important part of budgeting for your new home.

How Does LBTT Work?

LBTT is calculated based on the purchase price of the property. The amount you pay depends on how much your home costs- different tax rates apply to different price bands.

For example, if you buy a property in Scotland over the tax-free threshold, you’ll pay LBTT on the portion of the price that falls within each tax band.

How Do You Calculate Your LBTT Rate?

Revenue Scotland have a helpful calculator that helps you understand how much you will pay on your new property: see here.

Overall, the amount depends on:

- Type of property (residential or commercial)

- Property value

- Is it your main home or second home?

LBTT Paid on Selected Plots

How Much LBTT Will You Pay?

Purchase Price

LBTT %

Up to £145,000

£145,001 to £250,000

£250,001 to £325,000

£325,001 to £750,000

10%

Over £750,000

12%

Do First-Time Buyers Pay LBTT?

In Scotland, first-time buyers may benefit from LBTT relief, meaning they may pay less tax or none at all depending on the property price.

There is no LBTT payable on the first £175,000 of the property purchase, with potential savings of up to £600 in tax.

It's important to consider that this relief doesn't apply to those that have previous or current ownership of any residential property.

Scotia Homes' LBTT Incentives

At Scotia Homes, there are incentives available on selected plots where Scotia will pay your LBTT for you. This can be a huge saving and helps make buying your new home even more affordable.

If you’re looking for a new build home in Scotland, ask our Sales Team about LBTT incentives available at your preferred development.