If you buy a home in Scotland you pay Land and Buildings Transaction Tax (LBTT), and in Wales you pay Land Transaction Tax (LTT), instead of stamp duty. Both work in bands like stamp duty, but the thresholds and extras differ. Scotland gives first-time buyers a small relief and charges an 8% supplement on additional homes; Wales has no first-time buyer relief but a higher nil-rate band for everyone.
Key points
- LBTT (Scotland): 0% up to £145,000 for most buyers, and up to £175,000 for first-time buyers.
- Scotland's Additional Dwelling Supplement (ADS) is 8% of the whole price for second homes and buy-to-lets.
- LTT (Wales): 0% up to £225,000 for main homes, with no separate first-time buyer relief.
- Wales has a separate, higher set of rates for buyers who will own more than one home.
- Neither country has a non-resident surcharge, and returns are due within 30 days.
Land and Buildings Transaction Tax (Scotland)
LBTT replaced stamp duty in Scotland in 2015 and is collected by Revenue Scotland. In the Scottish Budget 2026 to 2027, the Scottish Government confirmed that all LBTT rates and bands, including ADS, stay at their current levels.
LBTT rates 2026
| Part of the price | Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Above £750,000 | 12% |
Note how quickly the rate climbs: Scotland charges 10% from £325,001, whereas England charges 5% until £925,000. Pricier homes usually pay more tax in Scotland.
First-time buyer relief in Scotland
First-time buyers get a nil-rate band of £175,000 instead of £145,000. That saves up to £600. Unlike in England, there is no price cap, so you get the relief on a home of any price. To qualify, you and every joint buyer must never have owned a home anywhere in the world, and you must intend to live in it as your only or main home.
Additional Dwelling Supplement (ADS)
ADS is charged at 8% of the whole price when you buy a home for £40,000 or more and you will own more than one home at the end of the day. Property abroad counts. It applies to buy-to-let, second homes and most company purchases.
If you are replacing your main home, the time limits are 36 months:
- if you sold your previous main home within 36 months before buying, ADS usually does not apply
- if you buy first, you pay ADS, then can claim it back from Revenue Scotland if you sell your previous main home within 36 months after buying
These 36-month limits apply to purchases from 1 April 2024. Earlier purchases used 18 months.
LBTT worked examples
1. First-time buyer, £200,000 flat in Glasgow. £500.
2. Family moving home, £350,000 in Edinburgh. £8,350.
3. Buy-to-let, £180,000. Normal LBTT plus 8% ADS on the whole price gives £15,100.
Every cost for your price and situation in the UK, including taxes for buyers from abroad.
Land Transaction Tax (Wales)
LTT replaced stamp duty in Wales in 2018 and is collected by the Welsh Revenue Authority.
LTT main rates
These apply if you are buying your only home, including first-time buyers. They have been in place since 10 October 2022.
| Part of the price | Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 to £400,000 | 6% |
| £400,001 to £750,000 | 7.5% |
| £750,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
There is no first-time buyer relief in Wales, but the £225,000 nil-rate band helps everyone buying a main home.
LTT higher rates
The higher rates apply when you buy a home for £40,000 or more and already own one or more other homes, and to most company purchases. They have applied since 11 December 2024.
| Part of the price | Higher rate |
|---|---|
| Up to £180,000 | 5% |
| £180,001 to £250,000 | 8.5% |
| £250,001 to £400,000 | 10% |
| £400,001 to £750,000 | 12.5% |
| £750,001 to £1.5 million | 15% |
| Above £1.5 million | 17% |
Unlike England and Scotland, Wales uses a separate set of bands rather than adding a flat surcharge. Spouses and civil partners are treated as buying together, and if any joint buyer would pay the higher rates, the whole purchase does.
If you buy a new main home before selling your old one, you pay the higher rates but can usually claim a refund if you sell your previous main home within 3 years.
LTT worked examples
1. First-time buyer, £220,000 in Cardiff. £0.
2. Moving home, £350,000. £7,500.
3. Second home, £250,000 on the coast. £14,950.
How LBTT and LTT differ from stamp duty
| Price and buyer | England & NI (SDLT) | Scotland (LBTT) | Wales (LTT) |
|---|---|---|---|
| £200,000 first home | £0 | £500 | £0 |
| £300,000 moving home | £5,000 | £4,600 | £4,500 |
| £500,000 moving home | £15,000 | £23,350 | £18,000 |
| £300,000 buy-to-let | £20,000 | £28,600 | £19,950 |
The main differences:
- First-time buyers: England gives the most generous relief, up to £500,000. Scotland's relief is small. Wales has none.
- Second homes: England adds 5%, Scotland adds 8%, and Wales uses its own higher bands.
- Non-residents: only England and Northern Ireland charge the 2% non-resident surcharge.
- Deadlines: 14 days in England and Northern Ireland, 30 days in Scotland and Wales.
Common mistakes
- Using an England stamp duty calculator for a Scottish or Welsh home. The figures can be thousands of pounds out.
- Assuming Wales has first-time buyer relief. It does not.
- Forgetting overseas property. It can trigger ADS or the Welsh higher rates and stop you being a first-time buyer in Scotland.
- Missing the 36-month or 3-year refund window when you buy before selling.
Work out your own figures
Use our free LBTT calculator for Scotland or LTT calculator for Wales to see the tax and legal costs for your price and buyer type. Rules last checked 16 October 2026.