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What is Land and Buildings Transaction Tax (LBTT)?
Last verified 23 October 2026
Land and Buildings Transaction Tax is the tax paid on buying property or land in Scotland. It replaced Stamp Duty Land Tax in Scotland from 1 April 2015. Returns are made to Revenue Scotland.
Why it matters to landlords
For 2026 to 2027 the residential bands are 0% up to £145,000 (£175,000 for first time buyers), 2% to £250,000, 5% to £325,000, 10% to £750,000 and 12% above. Buy to let purchases usually also pay the Additional Dwelling Supplement, a flat 8% of the whole price for most purchases with an effective date from 5 December 2024. It applies if you already own a residential property anywhere in the world and are not replacing your main home, but not where the price is under £40,000.
If you are replacing your main residence, the supplement does not apply where you sold your previous main home within the 36 months before buying, and you may be able to reclaim it if you sell the old home within 36 months after buying. The buyer must file an LBTT return within 30 days of the day after the effective date, usually completion.
Example
A landlord who owns their home buys a £200,000 flat in Glasgow to let. LBTT is 2% on £55,000, or £1,100, and the supplement is 8% of £200,000, or £16,000. The total is £17,100.
Related terms
- Stamp Duty Land Tax (SDLT)
- Land Transaction Tax (LTT)
- Scottish Income Tax
- Scottish landlord register
- SDLT higher rates surcharge