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Buying a new home

What is Land and
Buildings Transaction Tax
(Stamp Duty)?

Land and Buildings Transaction Tax changes

In July 2020, the government announced a temporary increase to Land Tax  thresholds (previously known as Stamp Duty in Scotland), meaning reduced rates of Land and Buildings Transaction Tax (LBTT) will apply on the purchase of residential properties until 31st March 2021.

You'll now pay LBTT if you're buying a house for over £250,000 in Scotland. In Wales, you'll pay Land Transaction Tax (LTT) on houses over £250,000 and Stamp Duty on houses over £500,000 in England or Northern Ireland. For more information on these changes, visit the Revenue Scotland website.

How much will I have to pay?

You can find out the exact amount you may have to pay on the property you're buying using the calculator from Revenue Scotland.

Costs for second home owners

If you're buying an additional residential property in Scotland, including rental properties, second homes and holiday homes, you may have to pay the Additional Dwelling Supplement. You'll pay this additional amount unless the main or second property costs less than £40,000.

How do I pay for LBBT?

With any big purchase, it's important to work out your budget. It's best not to borrow more money on your mortgage to cover LBTT, as this could affect your loan to value ratio. 

It's a good idea to make sure you have the cash to pay for LBTT before you make an offer on a property. You can use our budget calculator to see how to cover this cost.

Your solicitor will usually calculate and collect the LBTT in advance, but it's legally the buyers' responsibility to make sure it's paid on time.

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