We’ll talk you through what’s happening in the market in Aberdeen and Aberdeenshire; what types of properties are available; as well as what you can expect to happen when you’re buying.
We’re with you right through the process, from noting an interest and submitting an offer at a closing date, to negotiating the best price, finalising contracts and picking up the keys. We'll keep you updated as things move along.
And, we’ll give you an estimate at the start so you know what you can expect to pay, making it easy for you to compare quotes. We'll break costs down and list everything you need to make sure all the essentials are included.
Explaining Land and Buildings Transaction Tax (LBTT)
What is LBTT and who pays it?
When you buy a property in Scotland, you may need to pay Land and Buildings Transaction Tax (LBTT). In Scotland this replaced stamp duty in 2015. LBTT is a tiered tax, meaning you pay different rates depending on what you’re paying for your property.
LBTT applies to residential and commercial property purchases where the price exceeds a certain threshold. First-time buyers and some home movers may qualify for reliefs or exemptions.
Current LBTT Rates (2024)
The current LBTT thresholds for residential property purchases in Scotland are —
Property Price and corresponding LBTT rates
- Up to £145,000 — 0%
- £145,001 - £250,000 — 2%
- £250,001 - £325,000 — 5%
- £325,001 - £750,000 — 10%
- Over £750,000 — 12%
For example, if you buy a property for £300,000, you will pay 0% on the first £145,000, 2% on the next £105,000, and 5% on the remaining £50,000.
LBTT for first-time buyers
First-time buyers in Scotland can benefit from LBTT relief, which increases the 0% threshold to £175,000. This means you won’t pay LBTT on properties up to that amount, helping to reduce costs of up to £600 when purchasing your first home.
While the OMSE scheme is currently paused, this explainer from my colleague Lynne Stewart has some excellent advice for first-time buyers.
Additional Dwelling Supplement (ADS) – second home tax
If you are buying an additional property (such as a second home or buy-to-let property), you may also need to pay the Additional Dwelling Supplement (ADS), which is payable at a rate of 8% of the full purchase price.
What happens if a couple buys together but they own separate properties?
A common situation where ADS applies unexpectedly is when a couple buy a property together, but one or both already own separate properties. Even the new property is going to be the main residence, ADS still apply unless the previous properties are sold within 36 months.
For example —
- Buyer A owns a flat worth £150,000 and buyer B owns a house worth £200,000.
- They decide to buy a new home together worth £400,000.
- Since both retain ownership of their existing properties at the time of purchase, they will pay the regular LBTT but must pay also pay an additional 8% ADS on the full £400,000.
- This results in an ADS payment of £32,000, in addition to their standard LBTT payment of £13,350.
To be able to claim a refund of the ADS, they must each sell their previous properties within 36 monthsof the entry date of their new home
How to pay LBTT
When you buy a property in Scotland, your solicitor will handle the LBTT return and payment to Revenue Scotland. The tax must be paid within 30 days of the purchase date to avoid penalties.
LBTT calculator — how much will you pay?
For an estimate of your LBTT costs you can use Revenue Scotland’s LBTT calculator.
Need help with LBTT or buying a home?
Our expert property lawyers and conveyancing team can help you navigate LBTT and other legal requirements.
Call us on 01224 632500 or contact us online to get started.