Residential property

Find out how the Land and Buildings Transaction Tax (LBTT) is applied to residential properties.

Residential property

You usually pay Land and Buildings Transaction Tax (LBTT) on increasing portions of the property price when you buy residential property, for example, a house or flat. LBTT only applies to properties over a certain value.

The amount you pay depends on:

  • when you bought the property
  • how much you paid for it

You must send an LBTT return if you pay more than £40,000 for a property - even if there’s no LBTT due. There are some exemptions.

You may be charged penalties and interest if you do not submit or pay your tax return on time.


Buildings that are residential are:

  • used or suitable to use as a dwelling
  • dwellings in the process of being built
  • a building being adapted for use as a dwelling

Multiple occupancy dwellings that are residential include:

  • residential accommodation for school pupils
  • residential accommodation for students (other than halls of residence for further or higher education)
  • residential accommodation for members of the armed forces

Residential property rates and bands

LBTT rates and bands for residential transactions as of 1 April 2021:

 Purchase price  LBTT rate
 Up to £145,000  0%
 £145,001 to £250,000  2%
 £250,001 to £325,000  5%
 £325,001 to £750,000  10%
 Over £750,000  12%

If the consideration is above the upper amount of the nil rate band, LBTT is charged at the appropriate rate on the amount of the chargeable consideration within each band.

First-Time buyers relief

A relief for first-time buyers is available, which increases the residential nil rate band of LBTT to £175,000.

For effective dates after 1 April 2021, the availability of the relief will result in a reduction in tax of up to £600 for first-time buyers.

Rates during the period 15 July 2020 to 31 March 2021

LBTT rates and bands for residential transactions were changed on a time-limited basis with effect from 15 July 2020.

For transactions where the effective date is between 15 July 2020 and 31 March 2021 (inclusive of these dates), the temporary increase in the nil rate band to £250,000 introduced in July 2020 will apply.

First-time Buyer Relief would therefore have had no practical effect during the temporary period in which the £250,000 nil rate band threshold was in place. 

LBTT rates and bands for residential transactions with an effective date of 15 July 2020 to 31 March 2021:

 Purchase price  LBTT rate
 Up to £145,000  0%
 £145,001 to £250,000  0%
 £250,001 to £325,000  5%
 £325,001 to £750,000  10%
 Over £750,000  12%

Rates prior to 15 July 2020

LBTT rates and bands apply for residential transactions with an effective date before 15 July 2020

Purchase price LBTT Rate
Up to £145,000 0%
£145,001 to £250,000 2%
£250,001 to £325,000 5%
£325,001 to £750,000 10%
Over £750,000 12%

Use the LBTT calculator to work out how much tax you’ll pay.

Calculate tax