SDLT vs LBTT - How Property Taxes Differ in England and Scotland - Buying a Home in the UK - Why Property Tax Costs More in Scotland

11th January 2026

Buying a house is stressful enough without worrying about how much tax you'll owe on top of the purchase price.

In the UK, the rules differ sharply between England (where Stamp Duty Land Tax, SDLT applies) and Scotland (where the Land and Buildings Transaction Tax, LBTT applies).

Understanding the Systems

England - SDLT

Progressive rates, starting at 0% up to £250,000.

5% on amounts £250,001–£925,000; 10% on £925,001–£1.5 million; 12% above £1.5 million.

Scotland – LBTT

Also progressive, but starts at 0% only up to £145,000.

2% on £145,001–£250,000; 5% on £250,001–£325,000; 10% on £325,001–£750,000; 12% over £750,000.

The differences may seem subtle at first glance, but they create real disparities in what buyers actually pay.

Low-Value Properties - Little Difference

For a £150,000 home, the difference is minimal: SDLT in England is £0, LBTT in Scotland is £100. At £200,000, SDLT is still £0 in England, while LBTT rises to £1,100. The gap starts small but is noticeable, particularly for first-time buyers in Scotland.

Mid- and High-Value Properties: The Gap Widens

The divergence becomes dramatic for more expensive homes:

£500,000 property:

SDLT (England) = £12,500

LBTT (Scotland) = £23,350

Here, LBTT nearly doubles the tax liability, reflecting Scotland’s higher top rates kicking in from £325,001. In percentage terms, LBTT reaches 4.7% of the property price, compared with 2.5% for SDLT in England.

Implications for Buyers

Scottish buyers of mid- to high-value homes face significantly higher transaction costs.

The escalating LBTT rate can influence decisions on house size, location, and affordability.

While LBTT revenues fund Scottish public services, the immediate impact on household budgets is substantial.

While both systems are progressive, Scotland’s LBTT is more aggressive at mid- and high-value thresholds, while England’s SDLT offers a larger initial zero-tax band. Prospective buyers need to plan carefully, as the difference can add tens of thousands of pounds to a property purchase.