Devolved property taxes: LBTT (Scotland) and LTT (Wales) explained
LBTT and LTT are devolved taxes that replace SDLT in Scotland and Wales respectively.
4 min read · Updated 8 August 2026 · By Dwellmark Editorial
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, based only on the verified facts below.
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. The verified facts here cover 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. The verified facts here cover 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)
The verified facts confirm that 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 facts only provide a Scotland-specific first-time buyer relief. In Scotland, the LBTT nil rate band rises to £175,000 for first-time buyers, which the guidance says is worth up to £600 in tax saved for transactions after 1 April 2021. MISSING: verified facts on first-time buyer relief under LTT or SDLT.
Key facts
| Fact | Status |
|---|---|
| LBTT residential bands (as of 1 April 2021): 0% up to £145,000; 2% from £145,001 to £250,000; 5% from £250,001 to £325,000; 10% from £325,00 | unverified |
| LBTT worked example: £135,000 purchase pays £0; £875,000 purchase pays £63,350 (2% on £105k + 5% on £75k + 10% on £425k + 12% on £125k). | unverified |
| Scottish first-time buyer relief increases the LBTT nil rate band to £175,000, worth up to £600 in tax saved (effective dates after 1 April | unverified |
| Scotland: the Additional Dwelling Supplement (ADS) on LBTT is 8% for additional homes, increased from 6% with effect from 5 December 2024 (not applying where legal missives were signed on or before 4 December 2024). | verified-primary |
| LTT main residential rates (effective on or after 10 October 2022): 0% up to £225,000; 6% £225,001-£400,000; 7.5% £400,001-£750,000; 10% £75 | unverified |
| LTT worked example: a £280,000 home in Wales pays £3,300 (0% on first £225,000 + 6% on £55,000). | unverified |
| LTT higher residential rates for additional dwellings (effective 11 December 2024): 5% up to £180,000; 8.5% £180,001-£250,000; 10% £250,001- | unverified |
| LTT higher-rates worked example: a £260,000 second home in Wales pays £15,950 (5% on £180k + 8.5% on £70k + 10% on £10k). | unverified |
| SDLT applies to property in England and Northern Ireland; Scotland uses Land and Buildings Transaction Tax (LBTT); Wales uses Land Transacti | unverified |
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
Information and review status
This article provides general information only and is not professional advice. It was last reviewed and updated on 2026-08-08 using the sources cited in this article. Unless expressly stated otherwise, it has not been independently reviewed by a suitably qualified external professional. Laws, regulations, guidance, prices and market conditions can change, so you should verify information relevant to your circumstances before relying on it.Generated from dossier lbtt-ltt-devolved-taxes. Review before publishing.
Sources
- Revenue Scotland - LBTT residential property — Guidance checked August 2026
- Revenue Scotland - LBTT residential property — Guidance checked August 2026
- Revenue Scotland - LBTT residential property — Guidance checked August 2026
- 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
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