Residential LBTT revenue reaches record high

Our recent review of Scotland’s Land & Buildings Transaction Tax (LBTT) shows that, in 2022/23, LBTT revenue reached a record high in Scotland, driven by a relatively strong sales market and rising prices.

Key Findings

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A new chapter

63% of Scottish house sales are now over the minimum £145,000 threshold on which LBTT has to be paid. This is the highest proportion of eligible transactions since the introduction of the tax in 2015/16.

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Looking ahead

Revenue Scotland forecast LBTT receipts to contract by 16% in 2023/24.

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LBTT & New Builds

LBTT revenue generated by new build sales is now over £100 million per annum, with the house building sector potentially paying up to £10 million a year directly in LBTT payments.

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Geography lessons

Edinburgh generates an estimated 27% of LBTT revenue from 11% of Scotland’s house sales, while, nationally, sales over £750,000 generate over 22% of LBTT from around 1% of transactions.


The 2022/23 financial year saw LBTT revenue reach record levels, driven by rising prices and a relatively strong sales market. As house prices have risen, almost two-thirds of sellers will now be subject to LBTT.

Total Transaction Tax Revenue in Scotland, 2007/8 - 2022/23


While recent LBTT receipts have benefitted from an active sales market, the impact of the cost-of-living crisis, including rising mortgage costs, means that Revenue Scotland is forecasting LBTT to contract by 16% in 2023/24 as the market is expected to cool off.

Count of LBTT Receipts by Month in Scotland and YoY Change, 2021/22 - 2022/23

Revenue from the Additional Dwelling Supplement (ADS), which is a tax on second homes and empty homes, is forecast to increase in 2023/24 by 6%. However, given the recent increase in the ADS rate and the recently announced potential for councils to increase Council Tax rates on second homes , this Revenue Scotland forecast does seem ‘rosy’.


New build properties are an important source of LBTT revenue. Despite accounting for only 14% of transactions in Scotland in 2022/23, new build property sales generated an estimated 24% of LBTT revenue.

In total, the housebuilding sector generates over £100 million in LBTT receipts per annum for the government. And with many homebuilders currently offering incentives involving the payment of LBTT, a significant proportion of this revenue is effectively being funded directly by the sector itself.

New Build Properties in Scotland 2022/23


Edinburgh generated an estimated £128 million of LBTT revenue (27% of the national total) in 2022/23. The average LBTT bill in Edinburgh was £11,720, compared to £3,288 in Glasgow and £3,062 in Aberdeen.
Top 10 LBTT Revenue generating postcodes