LBTT Calculator

What is this?

An LBTT Calculator works out Land and Buildings Transaction Tax, the Scottish replacement for stamp duty, on a property or land purchase in Scotland. It covers residential and non-residential purchases, first-time buyer relief and the Additional Dwelling Supplement for second homes.

How to Use the LBTT Calculator

Land and Buildings Transaction Tax (LBTT) is the Scottish replacement for stamp duty, charged on property and land purchases in Scotland since April 2015. This calculator works out what you owe on a residential or non-residential purchase, including first-time buyer relief and the Additional Dwelling Supplement.

LBTT is progressive. Each rate applies only to the slice of the price that falls inside its own band, so a £300,000 home is not taxed at 5% throughout - it pays nothing on the first £145,000, 2% on the next slice, and 5% only on the part above £250,000.

1. Choose the Property Type

Use the Residential tab for houses and flats, or Non-residential for commercial and mixed-use property. The rate bands are different for each.

2. Enter the Purchase Price

Enter the chargeable consideration - normally the price you are paying for the property.

3. Say Whether You Are a First-Time Buyer

First-time buyer relief raises the nil-rate band from £145,000 to £175,000, saving up to £600. It applies to residential purchases only, where you will live in the property as your main residence.

4. Flag a Second Home or Buy-to-Let

If you will own more than one dwelling at the end of the transaction, the Additional Dwelling Supplement applies. It is 8% of the entire purchase price, not a slice, and only kicks in from £40,000.

5. Review the Band Breakdown

The result shows the tax owed in each band, the ADS if it applies, and the effective rate across the whole price.

Key Formulas Used in the Calculator

Residential LBTT Bands

$\text{Rate} = \begin{cases} 0\%, & \text{up to } £145{,}000 \\[4pt] 2\%, & £145{,}000 < \text{Amount} \leq £250{,}000 \\[4pt] 5\%, & £250{,}000 < \text{Amount} \leq £325{,}000 \\[4pt] 10\%, & £325{,}000 < \text{Amount} \leq £750{,}000 \\[4pt] 12\%, & \text{above } £750{,}000 \end{cases}$

Each rate applies only to the part of the price within its band. On £300,000 that is £0 on the first £145,000, 2% on £105,000 (£2,100) and 5% on £50,000 (£2,500), for £4,600 in total.

First-Time Buyer Relief

$\text{Nil-Rate Band} = £145{,}000 \;\longrightarrow\; £175{,}000$

$\text{Maximum Saving} = £600$

The relief removes the 2% charge on the £30,000 between £145,000 and £175,000, which is worth £600. Above £175,000 the saving stays at £600 rather than growing.

Additional Dwelling Supplement

$\text{ADS} = 8\% \times \text{Purchase Price}, \qquad \text{for Purchase Price} \geq £40{,}000$

Unlike the main bands, ADS is charged on the entire consideration rather than a slice. On a £300,000 second home that is £24,000 on top of the £4,600 standard LBTT, for £28,600.

Non-Residential LBTT Bands

$\text{Rate} = \begin{cases} 0\%, & \text{up to } £150{,}000 \\[4pt] 1\%, & £150{,}000 < \text{Amount} \leq £250{,}000 \\[4pt] 5\%, & \text{above } £250{,}000 \end{cases}$

Commercial and mixed-use purchases use these bands. Neither first-time buyer relief nor the ADS applies to them.

Benefits

• Uses Revenue Scotland's current rate bands

• Covers residential and non-residential purchases

• Applies first-time buyer relief and caps the saving correctly at £600

• Applies the 8% Additional Dwelling Supplement on the whole price

• Respects the £40,000 floor below which ADS does not apply

• Shows the tax owed band by band, not just a total

• Gives the effective rate across the whole purchase price

When & Where to Use

• Budgeting the upfront cost of buying a home in Scotland

• Comparing the tax on two properties at different prices

• Working out what first-time buyer relief is worth

• Costing a buy-to-let purchase including the ADS

• Checking a solicitor's LBTT figure

• Costing a commercial property purchase

• Deciding whether a price just above a band edge is worth negotiating down

Who Should Use This Calculator

The LBTT Calculator is for anyone buying property in Scotland - first-time buyers, home movers, buy-to-let investors and commercial purchasers - along with solicitors, mortgage advisers and estate agents who need a quick figure.

Tips to Get the Best Deal

LBTT is progressive, so crossing a band edge only taxes the amount above it

First-time buyer relief is worth £600 at most, however expensive the property

ADS applies to the whole price, which makes it much larger than it sounds

ADS can be reclaimed if you sell your previous main residence within 36 months

The £40,000 ADS floor is on the price, not on the equity

LBTT is normally paid by your solicitor within 30 days of completion

Rates are set by the Scottish Government and can change at a Budget

Pro Tips

• LBTT is progressive, so crossing a band edge only taxes the amount above it.

• First-time buyer relief is worth £600 at most, however expensive the property.

• ADS is charged on the whole price, not a slice, which makes it much larger than it sounds.

• ADS can be reclaimed if you sell your previous main residence within 36 months.

• Neither first-time buyer relief nor ADS applies to non-residential purchases.

• Rates are set by the Scottish Government and can change at a Budget.