Devolved property taxes: LBTT (Scotland) and LTT (Wales) explained

Property purchase tax is not the same across the UK. England and Northern Ireland use Stamp Duty Land Tax (SDLT), Scotland uses Land and Buildings Transaction Tax (LBTT), and Wales uses Land Transaction Tax (LTT) for sales completed on or after 1 April 2018. The main differences in this article are the tax names, rate bands, first-time buyer treatment and the extra charges for additional homes, .

Introduction to Devolved Property Taxes

Scotland and Wales do not use SDLT for their own property transactions. Instead, Scotland uses LBTT and Wales uses LTT, while SDLT applies in England and Northern Ireland. A common view is that different systems can reflect local housing markets, but critics say they can also make cross-border moves harder to follow.

Overview of LBTT (Scotland)

LBTT is Scotland’s property transaction tax. This page covers residential bands from 1 April 2021, a first-time buyer relief that raises the nil rate band to £175,000 (worth up to £600), and an Additional Dwelling Supplement for extra homes that has been 8% since 5 December 2024, up from 6%.

Overview of LTT (Wales)

LTT is Wales’s property transaction tax. This page covers the main residential rates effective on or after 10 October 2022 and the higher residential rates for additional dwellings effective 11 December 2024. The Welsh guidance also says the higher rates may not apply if the buyer is replacing their main residence.

Comparison with SDLT (England)

SDLT applies in England and Northern Ireland, while Scotland and Wales use LBTT and LTT instead. They do not provide SDLT rate bands or relief details, so this comparison can only say with confidence that the systems are separate and that LBTT and LTT have their own bands and surcharge structures.

Rates and Bands

For LBTT residential purchases in Scotland, the bands listed are 0% up to £145,000; 2% from £145,001 to £250,000; 5% from £250,001 to £325,000; 10% from £325,001 to £750,000; and 12% over £750,000. The worked examples given are £0 on a £135,000 purchase and £63,350 on an £875,000 purchase. For LTT main residential rates in Wales, the bands listed are 0% up to £225,000; 6% from £225,001 to £400,000; 7.5% from £400,001 to £750,000; 10% from £750,001 to £1,500,000; and 12% over £1,500,000. The worked example given is £3,300 on a £280,000 home.

First-Time Buyer Reliefs

The verified sources cover first-time buyer relief for Scotland only. In Scotland, the LBTT nil rate band rises to £175,000 for first-time buyers, worth up to £600 in tax saved for transactions after 1 April 2021. This guide does not cover first-time buyer relief under Welsh LTT or English SDLT.

Key facts

Source: Revenue Scotland - LBTT residential property — Guidance checked August 2026

Source: Revenue Scotland - LBTT residential property — Guidance checked August 2026

Source: Revenue Scotland - LBTT residential property — Guidance checked August 2026

Source: Scottish Government - Scottish Budget 2025-26, Chapter 2 Tax Policy — ADS increase 6% to 8% with effect from 5 December 2024 - fetched 8 August 2026