LBTT Revenues Continue to Increase.

LBTT was introduced by the Scottish Government in April 2015, marking a divergence from the UK’s Stamp Duty regime. The nation’s LBTT bill that month was just £7 million. By contrast, eleven years later, in April 2026, this bill had climbed to nearly £56 million.

Around 70% of sales are over the £145,000 threshold, meaning the vast majority of Scottish house buyers can expect an LBTT bill.

In 2025/26, Residential LBTT revenue reached a record high in Scotland of c.£760 million, driven by a small increase in house sales and rising prices.

Final Thoughts.

LBTT has become a central feature of Scotland’s property market, with revenues now at record levels. Rising house prices and unadjusted thresholds have steadily brought more buyers into scope, while the Additional Dwelling Supplement has grown into a significant driver of receipts.

Revenues are reliant on a small share of high-value transactions, particularly in Edinburgh and Glasgow, which underlines both the strength and vulnerability of the current tax base.

Looking ahead, policy discussions around property taxation at the UK level, and the potential for reform in Scotland, will be important to monitor. As we often argue, the Scottish Government should undertake a behavioural analysis of people’s responses to taxation, particularly LBTT, to optimise the tax take while also not depressing the market. As the revenues keep rising, it probably believes there is no need to do so, but this is a tax take that rests on small supporting pillars.

LBTT Calculator and Guide.

Visit our LBTT Calculator and Guide webpage for detailed information and tools related to the Land and Buildings Transaction Tax (LBTT), a tax on property purchases in Scotland. It includes a calculator for estimating LBTT based on property value. The page also explains how LBTT rates are applied, who is required to pay, and offers examples of how the tax is calculated. Additionally, it offers links to download our LBTT guide.