Land and Buildings Transaction Tax (LBTT) Residential

Residential

The Scotland Act 2012 devolved Stamp Duty Land Tax to the Scottish Parliament from April 2015. Following devolution, Land and Buildings Transaction Tax (LBTT) replaced Stamp Duty Land Tax.

The Scottish Parliament sets the rate of tax on residential purchases of land and buildings. LBTT is a fully devolved tax collected by Revenue Scotland.

Additional Dwelling Supplement (ADS)

In April 2016, the Scottish Government introduced the LBTT Additional Dwelling Supplement (ADS) for additional properties such as second homes or buy-to-let.

The ADS is charged at 3% of the total purchase price of additional properties priced at £40,000 and above.

Latest forecasts

On 30 May 2019, we produced updated forecasts for Residential LBTT.

Residential LBTT forecast (excluding ADS) - May 2019

£ million 2017-18 [1] 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Residential 258 262 279 310 336 359 382 405

[1] 2017-18 values are outturn available at time of publication.

ADS forecast - May 2019

£ million 2017-18 [1] 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
ADS 95 98 126 127 131 134 138 141

[1] 2017-18 values are outturn available at time of publication.

Our report Scotland’s Economic and Fiscal Forecasts contains further information on the methodology used to forecast residential LBTT.

Supporting information

Scottish Fiscal Commission (2018) Scotland's Economic and Fiscal Forecasts December 2018

Scottish Fiscal Commission (2018) Scotland’s Economic and Fiscal Forecasts May 2018

Scottish Fiscal Commission (2017) Scotland’s Economic and Fiscal Forecasts December 2017

Scottish Fiscal Commission (2016) Current Approach to Forecasting

Revenue Scotland LBTT page

Scottish Government page on LBTT

UK Government page on Scottish lands and buildings transactions

Revenue Scotland LBTT tax statistics

OBR Scottish tax forecasts