In Scotland, the equivalent of what is commonly known as "stamp duty" in the rest of the United Kingdom is referred to as the Land and Buildings Transaction Tax (LBTT).
The LBTT is a property tax that is levied when residential properties are bought or sold. The rates of LBTT vary depending on the purchase price of the property, and there are different thresholds that determine the amount of tax payable.
For homebuyers in Scotland, the LBTT rates are structured into various bands.
Properties valued at £145,000 or below are not subject to LBTT.
For properties priced between £145,001 and £250,000, a rate of 2% is applied.
The tax rate increases to 5% for values between £250,001 and £325,000, and further increases apply to higher-priced properties.
For instance, the value of properties between £325,001 and £750,000 is taxed at a rate of 10%, and values over £750,000 are taxed at 12%.
These rates are subject to change, so it's important for homebuyers in Scotland to stay informed about the current LBTT rates to accurately calculate the tax liability associated with their property purchase.
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