Breakdown
How it works
LBTT is banded: 0% to £145,000 (£175,000 for first-time buyers), 2% to £250,000, 5% to £325,000, 10% to £750,000, 12% above. Buying an additional dwelling worth £40,000 or more adds the 8% ADS on the whole price, refundable if you sell your previous main home within 36 months.
Formula
LBTT = Σ band slices × rates
ADS = 8% × price (additional dwellings)
Worked example
£300,000 home mover: 2% of 105,000 + 5% of 50,000 = £4,600. First-time buyer: £4,000. Second home: £4,600 + £24,000 ADS = £28,600.
Frequently asked questions
How does LBTT compare with SDLT?
Cheaper below about £330,000 and much more expensive above £750,000 (12% band starts at £750k vs £1.5m in England).
Who collects it?
Revenue Scotland; your solicitor files within 30 days of the effective date.
Is ADS payable on inherited or gifted property?
No — only on purchases. But owning an inherited property can make your next purchase an additional dwelling.