LBTT vs SDLT: What's Different Between Scotland and England?
Scotland and England both charge tax when you buy property, but the rates, bands, and rules differ significantly. Here's a side-by-side comparison with real examples.
If you’re buying property in Scotland, you don’t pay stamp duty — you pay Land and Buildings Transaction Tax (LBTT). The name change isn’t cosmetic. The bands, thresholds, and especially the rules for additional properties are genuinely different from England’s SDLT.
We’ve built calculators for both, and we still get asked which is cheaper. The honest answer: it depends on the price, whether you’re a first-time buyer, and whether it’s an additional property. Here’s how they compare.
The basic bands
| Band | SDLT (England) | LBTT (Scotland) |
|---|---|---|
| Nil-rate | Up to £125,000 | Up to £145,000 |
| Next band | 2% to £250,000 | 2% to £250,000 |
| Middle | 5% to £925,000 | 5% to £325,000 |
| Upper | 10% to £1.5m | 10% to £750,000 |
| Top | 12% above £1.5m | 12% above £750,000 |
Scotland’s nil-rate band is £20,000 higher. But the middle and upper bands kick in much sooner — at £325,000 and £750,000 respectively, compared to £925,000 and £1.5 million in England.
Same price, different tax
£250,000 purchase (only home):
- England: £2,500 SDLT
- Scotland: £2,100 LBTT
Scotland wins by £400 at this price, thanks to the higher nil-rate band.
£400,000 purchase (only home):
- England: £10,000 SDLT
- Scotland: £13,350 LBTT
England wins here. Scotland’s 5% band tops out at £325,000, so more of the price falls into the 10% band.
£750,000 purchase (only home):
- England: £27,500 SDLT
- Scotland: £48,350 LBTT
The gap widens at higher prices because Scotland’s top 12% rate starts at £750,000, while England’s doesn’t kick in until £1.5 million.
First-time buyer relief: different designs
England offers generous first-time buyer relief: no tax on the first £300,000, then 5% up to £500,000. But it disappears entirely above £500,000.
Scotland’s relief is modest — the nil-rate band rises from £145,000 to £175,000, saving a maximum of £600. But there’s no upper price cap. A Scottish first-time buyer at £600,000 still gets the £600 saving.
For a £200,000 first home, both systems are effectively free of tax. For a £450,000 first home, England’s relief is worth far more (£7,500 vs £600 in Scotland).
Additional properties: completely different mechanics
This is the biggest practical difference. In England, buying a second home adds 5 percentage points to each band rate. In Scotland, you pay a flat 8% Additional Dwelling Supplement (ADS) on the entire purchase price, on top of standard LBTT.
£300,000 buy-to-let:
- England: £17,500 SDLT (standard £5,000 + surcharge)
- Scotland: £27,350 LBTT (£3,350 standard + £24,000 ADS)
Scotland’s ADS is punishing for additional properties. The flat-rate approach means the effective rate climbs quickly, especially on lower-priced buy-to-lets.
Wales is different again
Wales uses Land Transaction Tax (LTT) with its own band structure. The nil-rate band is £225,000 (higher than both), but there’s no first-time buyer relief. Additional properties use a separate rate table rather than a surcharge. See our LTT calculator for Welsh rates.
Which calculator should I use?
- Buying in England or Northern Ireland → SDLT calculator
- Buying in Scotland → LBTT calculator
- Buying in Wales → LTT calculator
All three use the current official rates and show a full band-by-band breakdown. Rates do change — always confirm with your solicitor before budgeting.