Quick Summary
- Scotland uses LBTT; England uses SDLT — both are property purchase taxes, but different bands, different rates, and different surcharges apply
- Scottish buyers save on lower-value properties — LBTT is cheaper than SDLT for most purchases under £325,000
- Additional property surcharge: 8% Scotland (ADS) vs 5% England — Scottish landlords and second-home buyers pay a significantly higher surcharge
- Use our LBTT Calculator to see your exact LBTT bill and how it compares to equivalent SDLT
If you're moving between Scotland and England, or comparing investment property costs across the border, the difference between LBTT and SDLT can run to thousands of pounds. The two systems look similar on the surface but diverge significantly in the mid to upper price ranges.
Quick Answer: Land and Buildings Transaction Tax (LBTT) in Scotland and Stamp Duty Land Tax (SDLT) in England are both property purchase taxes, but they use different band structures and rates. Scottish buyers typically pay less tax on purchases under £325,000, similar amounts at £325,000–£500,000, and more at £500,000+ due to Scotland's higher top rate. The additional dwelling supplement (ADS) is 8% in Scotland versus 5% in England — a significant extra cost for Scottish landlords and second-home buyers. Use our LBTT Calculator for your exact Scottish bill.
How LBTT works
LBTT is a slice tax — each portion of the purchase price is taxed at the rate for that slice, not the whole price at the highest rate.
LBTT residential rates 2026/27
| Purchase price band | LBTT 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% |
Example: Buying a £300,000 flat in Edinburgh.
- First £145,000: 0% = £0
- Next £105,000 (£145,001–£250,000): 2% = £2,100
- Next £50,000 (£250,001–£300,000): 5% = £2,500
- Total LBTT: £4,600
How SDLT works
SDLT also uses a slice structure but with different bands.
SDLT residential rates 2026/27
| Purchase price band | SDLT rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001–£250,000 | 2% |
| £250,001–£925,000 | 5% |
| £925,001–£1,500,000 | 10% |
| Over £1,500,000 | 12% |
Example: Same £300,000 property in Leeds.
- First £125,000: 0% = £0
- Next £125,000 (£125,001–£250,000): 2% = £2,500
- Next £50,000 (£250,001–£300,000): 5% = £2,500
- Total SDLT: £5,000
At £300,000, the Scottish buyer saves £400.
Side-by-side comparison at every price point
Main residence purchases (no surcharge)
| Purchase price | LBTT (Scotland) | SDLT (England) | Difference (Scotland saves/pays) |
|---|---|---|---|
| £100,000 | £0 | £0 | £0 |
| £150,000 | £100 | £500 | Scotland saves £400 |
| £200,000 | £1,100 | £1,500 | Scotland saves £400 |
| £250,000 | £2,100 | £2,500 | Scotland saves £400 |
| £300,000 | £4,600 | £5,000 | Scotland saves £400 |
| £325,000 | £5,850 | £6,250 | Scotland saves £400 |
| £400,000 | £13,350 | £10,000 | Scotland pays £3,350 more |
| £500,000 | £23,350 | £15,000 | Scotland pays £8,350 more |
| £750,000 | £48,350 | £27,500 | Scotland pays £20,850 more |
| £1,000,000 | £78,350 | £43,750 | Scotland pays £34,600 more |
| £1,500,000 | £138,350 | £93,750 | Scotland pays £44,600 more |
The crossover point is around £325,000. Below that, Scottish buyers save. Above it — particularly above £500,000 — Scottish buyers pay substantially more, driven by Scotland's 10% rate on £325,001–£750,000 versus England's 5% on that range.
Try it yourself
Calculate your exact LBTT bill on any Scottish property purchase.
Open LBTT CalculatorNo sign-up required.
First-time buyer relief comparison
Both Scotland and England offer first-time buyer relief:
Scotland (LBTT First-Time Buyer Relief):
- Nil rate band extends from £145,000 to £175,000
- On a £175,000 purchase: LBTT = £0 (vs £600 without relief)
- On a £200,000 purchase: only slice above £175,000 taxed at 2% = £500
- Maximum saving vs standard buyer: £600
England (SDLT First-Time Buyer Relief):
- Nil rate band extends from £125,000 to £425,000
- On a £425,000 purchase: SDLT = £5,000 (vs £11,250 without relief)
- Maximum saving vs standard buyer: £6,250
| Purchase price | LBTT FTB (Scotland) | SDLT FTB (England) | England FTB saving vs Scotland FTB |
|---|---|---|---|
| £175,000 | £0 | £1,250 | England: £1,250 cheaper |
| £200,000 | £500 | £1,500 | England: £1,000 cheaper |
| £250,000 | £1,500 | £2,500 | England: £1,000 cheaper |
| £300,000 | £4,600 | £3,750 | Scotland: £850 cheaper |
| £400,000 | £13,350 | £6,250 | England: £7,100 cheaper |
| £425,000 | £15,600 | £7,500 | England: £8,100 cheaper |
| £450,000 | £18,100 | £11,250 | England: £6,850 cheaper |
England's first-time buyer relief is substantially more generous, particularly for FTBs buying in the £175,000–£425,000 range. Scottish FTBs get very limited benefit from the relief — the band extension from £145,000 to £175,000 saves at most £600.
Additional dwelling purchases (landlords and second homes)
Both countries charge a surcharge on top of the standard rate for buyers who own (or will own) more than one property.
Scotland: Additional Dwelling Supplement (ADS) = 8% on full purchase price England: Higher rates for additional dwellings = 5% on full purchase price
| Purchase price | ADS (Scotland, 8%) | SDLT additional (England, 5%) | Scotland pays extra |
|---|---|---|---|
| £150,000 | £12,000 | £7,500 | £4,500 more |
| £200,000 | £16,000 | £10,000 | £6,000 more |
| £300,000 | £24,000 | £15,000 | £9,000 more |
| £500,000 | £40,000 | £25,000 | £15,000 more |
Total additional property tax (standard + surcharge):
| Purchase price | Total LBTT+ADS (Scotland) | Total SDLT additional (England) |
|---|---|---|
| £200,000 | £17,100 (£1,100 LBTT + £16,000 ADS) | £11,500 (£1,500 SDLT + £10,000 surcharge) |
| £300,000 | £28,600 (£4,600 + £24,000) | £20,000 (£5,000 + £15,000) |
| £500,000 | £63,350 (£23,350 + £40,000) | £40,000 (£15,000 + £25,000) |
Scottish buy-to-let investors pay dramatically more than English equivalents on the same purchase price. On a £300,000 buy-to-let, the Scottish investor pays £8,600 more than their English counterpart — and this is a pure after-tax cost with no recovery mechanism.
Try it yourself
Calculate LBTT including ADS for additional property purchases in Scotland.
Open LBTT CalculatorNo sign-up required.
Other key differences
ADS refund rules
Scotland allows ADS to be reclaimed if you buy a new main residence before selling your old one (paying ADS on the new purchase) and then sell the old one within 36 months. England has an equivalent SDLT surcharge refund.
Key difference: Scotland's ADS refund is restricted to natural persons (individuals). Companies buying additional property pay ADS with no refund mechanism. See the ADS Refund Guide for full detail.
Non-residential property
Both LBTT and SDLT apply to commercial property purchases but with different rates:
| Price band | LBTT (Scotland) non-residential | SDLT (England) non-residential |
|---|---|---|
| Up to £150,000 | 0% | 0% |
| £150,001–£250,000 | 1% | 2% |
| Over £250,000 | 5% | 5% |
Scotland is cheaper for commercial property purchases between £150,001 and £250,000.
Mixed-use properties
Properties with both residential and commercial elements (e.g. shop with flat above) can use non-residential rates in both countries. This is often significantly cheaper — particularly in England where mixed-use SDLT was a major planning opportunity, and Scotland where it's also available.
Scottish mixed-use example: A solicitor's office with residential flat above, purchased for £300,000. Non-residential LBTT: 0% on first £150,000 + 1% on next £100,000 + 5% on next £50,000 = £0 + £1,000 + £2,500 = £3,500 vs standard residential LBTT of £4,600. And ADS does not apply to non-residential purchases.
LBTT on leases
Scotland has a separate LBTT charge on commercial leases, based on the net present value of lease payments. England's SDLT on leases works similarly. For most residential tenancies in Scotland (Private Residential Tenancies), no LBTT applies.
Linked transactions
If two properties are purchased together in a single transaction (e.g. buying two properties from the same seller as part of one deal), LBTT and SDLT can be applied to the aggregate price or calculated separately depending on structure. Get professional advice on linked transactions — they can significantly affect the tax bill in both systems.
Moving between Scotland and England
Buying in Scotland, selling in England
If you sell your English home and buy in Scotland, the English sale proceeds no longer affect SDLT (you've left the English system). Your Scottish purchase is assessed under LBTT. If you're replacing your main residence, the normal LBTT rates apply — no ADS.
Buying in England, selling in Scotland
If your main home is in Scotland and you buy in England, SDLT applies to the English purchase. If you own your Scottish home and buy the English property before selling, SDLT's additional dwelling surcharge applies — but is refundable if the Scottish property sells within 3 years.
Owning in both countries
Owning a property in Scotland and buying another in England means the English purchase attracts SDLT at the higher additional dwelling rates (your Scottish property counts as an existing property). The same applies in reverse.
Frequently Asked Questions
Is LBTT always cheaper than SDLT?
No. For properties up to approximately £325,000, Scottish LBTT is equal to or cheaper than SDLT. Above £325,000, LBTT becomes progressively more expensive than SDLT, driven by Scotland's 10% band on £325,001–£750,000 versus England's 5% on the same range.
Do I pay LBTT if I'm buying through a company?
Yes. Companies pay LBTT at the same rates as individuals for residential property. ADS at 8% applies to most company purchases of residential property (companies don't have a "main residence" so the replacement exemption doesn't apply).
Is there an equivalent to LBTT in Wales?
Yes — Wales uses Land Transaction Tax (LTT), which is also different from both LBTT and SDLT. LTT rates and bands differ from both Scottish and English systems.
What happens if I pay the wrong amount?
LBTT is self-assessed and submitted to Revenue Scotland within 30 days of completion. If you overpay, you can claim a refund through Revenue Scotland. If you underpay, Revenue Scotland can charge interest and penalties. An LBTT return (even if no tax is due on a purchase above £40,000) is required for all land transactions above £40,000.
Is new-build LBTT different?
No special new-build relief in Scotland (unlike England's various Help to Buy schemes). LBTT applies at standard rates to new-build purchases. First-time buyer relief applies to new-builds as to any other residential property.
Related Articles
- LBTT Calculator — calculate your exact LBTT bill
- ADS Refund Guide — getting the 8% back after selling your old home
- Limited Company vs Personal BTL Scotland — ADS on incorporation transfers
- Scottish Capital Gains Tax Guide — LBTT as part of CGT base cost
- Home Reports Scotland — the Scottish home-buying process
This article is for informational purposes only and does not constitute financial or tax advice. LBTT and SDLT rates are subject to change — always verify current rates with Revenue Scotland (revenue.scot) and HMRC (gov.uk/stamp-duty-land-tax) before completing a transaction.
Sources: Revenue Scotland — LBTT rates, HMRC — Stamp Duty Land Tax rates, Revenue Scotland — ADS