LBTT Calculator (Scotland)
Use this calculator to estimate Land and Buildings Transaction Tax (LBTT) for common transaction types in Scotland, including standard residential purchases, first-time buyer relief, and non-residential transactions.
Rates in this tool are for guidance and based on commonly used LBTT band structures. Always verify current rules with Revenue Scotland or a qualified tax adviser.
What is Land and Buildings Transaction Tax (LBTT)?
LBTT is the property transaction tax in Scotland. It applies when land or buildings are purchased above certain thresholds. Unlike a flat tax, LBTT uses a progressive band system, so each portion of the price is taxed at the rate for that band.
That structure means a buyer does not pay one single rate on the full purchase price. Instead, the tax is calculated in slices, which is why a band-by-band calculator can be useful when budgeting for completion costs.
How this calculator works
- Enter the purchase price of the property.
- Select the transaction type that best matches your purchase.
- If applicable, tick ADS for an additional residential property.
- Click Calculate Tax to see the total and the full band breakdown.
Default rate assumptions used in this page
- Residential (standard): 0% to £145,000; 2% to £250,000; 5% to £325,000; 10% to £750,000; 12% above £750,000.
- First-time buyer relief: 0% to £175,000; then standard residential rates above that point.
- Non-residential/mixed: 0% to £150,000; 1% to £250,000; 5% above £250,000.
- Additional Dwelling Supplement (ADS): 6% on the full purchase price for qualifying additional residential dwellings.
Example calculations
Example 1: Standard residential purchase at £300,000
LBTT is calculated by band: 0% on the first £145,000, 2% on the next £105,000, and 5% on the remaining £50,000. Estimated LBTT total: £4,600.
Example 2: First-time buyer purchase at £200,000
Under first-time buyer relief, the 0% threshold extends to £175,000. So only £25,000 is taxed at 2%, producing an estimated LBTT of £500.
Example 3: Additional residential property at £300,000
Standard LBTT from Example 1 is £4,600. If ADS applies, add 6% of £300,000 (£18,000). Estimated combined total: £22,600.
Why buyers should run this calculation early
Property buyers often focus on deposit and mortgage payments, but transaction taxes can materially change cash needed at completion. Running LBTT estimates early helps with:
- accurate completion budgeting,
- smoother mortgage and savings planning,
- faster decision-making when comparing properties, and
- avoiding late-stage surprises before closing.
Frequently asked questions
Is this calculator official?
No. This is an educational and planning tool. For legal/tax certainty, use official Revenue Scotland guidance and professional advice.
Does ADS apply to non-residential purchases?
No. ADS is relevant to qualifying additional residential transactions. The calculator disables ADS when non-residential or first-time buyer mode is selected.
Can rates change?
Yes. Governments can update thresholds and rates. Re-check figures whenever you are preparing an actual transaction.
Final note
A good property decision combines tax awareness, financing strategy, and long-term affordability. Use this land and building transaction tax calculator as a quick first step, then confirm details with your solicitor or tax professional before exchange and completion.