LBTT4009 - Residential land or property rates and bands

LBTT guidance on the tax rates and bands which apply to residential property transactions.

For residential property transactions, the rate of tax is determined by reference to percentages of the chargeable consideration for the transaction falling within the bands below.

LBTT(S)A 2013 section 24

The Land and Buildings Transaction Tax (Tax Rates and Tax Bands) (Scotland) Order 2015

The Land And Buildings Transaction Tax (Tax Rates And Tax Bands) (Scotland) Amendment (No.2) (Coronavirus) Order 2020

(see LBTT4010 for guidance on what constitutes residential property and LBTT2002 for guidance on what is chargeable consideration)

Rates from 1 April 2021

The Scottish Budget 2021-2022 confirmed that the ceiling of the nil-rate band for residential LBTT will return, as planned, to £145,000 for transactions with an effective date after 31 March 2021.

Rates and bands as of 1 April 2021 will therefore be as follows:

Purchase Price LBTT rate
 Up to £145,000 0%
 Above £145,000 to £250,000 2%
 Above £250,000 to £325,000 5%
 Above £325,000 to £750,000 10%
 Over £750,000 12%

The following LBTT rates apply for residential transactions with an effective date of 15 July 2020 to 31 March 2021:

Purchase Price LBTT rate
Up to £250,000 0%
Above £250,000 to £325,000 5%
Above £325,000 to £750,000 10%
Over £750,000 12%

The following LBTT rates and bands apply for residential transactions with an effective date prior to 15 July 2020:

Purchase Price LBTT rate
Up to £145,000 0%
Above £145,000 to £250,000 2%
Above £250,000 to £325,000 5%
Above £325,000 to £750,000 10%
Over £750,000 12%

LBTT(S)A 2013 section 25 provides for the calculation of the amount of tax and section 59(1) sets out what counts as residential property. If the purchase price is above the nil rate tax band, LBTT is charged at the appropriate rate on the amount of the chargeable consideration that falls within each of the relevant bands.

LBTT(S)A 2013 section 25

LBTT(S)A 2013 section 59(1)

We have developed an online tax calculator on our website for help in working out the amount of LBTT payable on residential transactions. This calculator is for reference purposes only.

Anything of economic value which is given in exchange for land or property counts as the chargeable consideration (see LBTT2002)

LBTT(S)A 2013 Schedule 2

Ref ID

LBTT4009

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