First-Time Buyer LBTT Relief in Scotland
Scotland gives first-time buyers a flat maximum reduction rather than a large threshold. It is smaller than England's relief in cash terms, but it never runs out.
First-time buyer relief in Scotland works by lifting the Land and Buildings Transaction Tax nil-rate band to £175,000. Because the band above it is charged at a modest rate, the relief is worth a flat maximum of £600 and cannot be worth more than that at any price. The important part is what Scotland leaves out. There is no upper price cap on the relief. A first-time buyer at a modest price and a first-time buyer at a very high price both receive the same reduction, and no purchase is ever pushed off a cliff by crossing a threshold. Revenue Scotland administers the relief and sets the qualifying conditions.
A flat reduction, capped by amount rather than by price
The relief raises the point at which LBTT starts to bite, from £145,000 to £175,000. Once a purchase is above £175,000 the saving stops growing, because the untaxed slice has been fully used. From that price upwards the relief is worth its flat maximum of £600 and nothing more. Below £145,000 the relief changes nothing, since no LBTT would be due in any case. It is claimed on the LBTT return, which a solicitor normally submits.
No price cap, so no cliff to plan around
This is the structural difference from England. Scotland does not withdraw the relief above any price, so a first-time buyer of an expensive property in Edinburgh or Aberdeen receives the same reduction as a first-time buyer of an inexpensive one. Nothing is gained or lost by keeping an agreed price under a particular figure, and there is no dead zone above a threshold where paying slightly more leaves the buyer worse off overall. The relief is small, predictable and always there.
Who qualifies
Every buyer on the transaction must be a first-time buyer, and the property must be intended as their only or main residence. Previous ownership counts wherever it occurred and however it was acquired, including by inheritance or gift. The relief applies to LBTT only. It does nothing to reduce the Additional Dwelling Supplement, which by definition applies to a purchase that leaves the buyer owning more than one dwelling. Revenue Scotland is the authority on both.
What a first-time buyer actually pays in Scotland
| Price | First-time buyer | Home mover | Saving |
|---|---|---|---|
| £200,000 | £500 | £1,100 | £600 |
| £250,000 | £1,500 | £2,100 | £600 |
| £300,000 | £4,000 | £4,600 | £600 |
| £350,000 | £7,750 | £8,350 | £600 |
| £400,000 | £12,750 | £13,350 | £600 |
| £450,000 | £17,750 | £18,350 | £600 |
| £500,000 | £22,750 | £23,350 | £600 |
| £600,000 | £32,750 | £33,350 | £600 |
Check your own price
LBTT on a £300,000 property in Scotland for a first-time buyer. That is an effective rate of 1.3%.
Includes £600 of first-time buyer relief.
First-time buyers elsewhere in the UK
England & Northern Ireland
SDLT offers first-time buyer relief on different terms.
Wales
Wales offers no first-time buyer relief at all.
Common questions
Is Scottish first-time buyer relief capped by purchase price?
No. There is no upper price limit. The relief is capped in amount, at a flat maximum of £600, but it remains available at any purchase price. Scotland has no equivalent of the English cliff.
Is the Scottish relief worth less than the English one?
In cash terms, usually yes, because it is capped at a flat maximum of £600 rather than exempting a large slice of the price. The trade-off is that it never disappears, so expensive purchases keep it.
How do I claim it?
The relief is claimed on the LBTT return for the transaction, which a solicitor normally files and pays on the buyer's behalf at settlement. Revenue Scotland sets the qualifying conditions and is the authority on whether a particular purchase qualifies.
Source: Revenue Scotland. Rates effective from 1 April 2021, verified 9 August 2026. Figures are computed from the published rate tables and checked against Revenue Scotland’s own calculator.