From 1 April 2025, property buyers in England and Northern Ireland saw changes to Stamp Duty Land Tax (SDLT). But if you're buying property in Scotland, you might wonder: does this affect me? The short answer is no, but it's still helpful to understand the differences and how Scotland’s system compares.

What’s changed with Stamp Duty in England?

The UK Government announced several reforms to Stamp Duty Land Tax, which came into effect on 1 April 2025. Key changes include:

• The nil-rate band for residential purchases in England and Northern Ireland has been reduced from £250,000 to £125,000.
• First-time buyers will now pay SDLT on purchases above £300,000, rather than £425,000 as before.
• There is no further change to the higher rates for second homes and buy-to-let properties. The 3% surcharge had already increased to 5% on 31 October 2024.

These changes effectively roll back the temporary relief measures introduced during the 2022 mini-budget and are intended to rebalance the market following increased activity.

Stamp Duty is now payable in England and Northern Ireland as follows:

• Property value up to £125,000 - 0% SDLT
• Property value from £125,001 to £250,000 - 2% SDLT
• Property value from £250,001 to £925,000 - 5% SDLT (with first-time buyers paying this rate from £300,000)
• Property value from £925,001 to £1.5 million - 10% SDLT
• Property value above £1.5 million - 12% SDLT

If you’re buying a second or subsequent home, add 5% to each charge.

Scotland has its own system: LBTT

In Scotland, Stamp Duty doesn’t apply. Instead, we have Land and Buildings Transaction Tax (LBTT), which is set and managed by the Scottish Government. LBTT thresholds and rates are different - and unaffected by Westminster decisions.

As of April 2025, LBTT rates remain as follows:

• No tax on purchases up to £145,000 (or £175,000 for first-time buyers).
• 2% on the portion from £145,001 to £250,000.
• 5% from £250,001 to £325,000.
• 10% from £325,001 to £750,000.
• 12% above £750,000.

An Additional Dwelling Supplement (ADS) of 8% of the property's value (if over £40,000) applies if you’re buying a second home or a buy-to-let property.

Will Stamp Duty changes have a knock-on effect in Scotland?

Not directly. Property tax is devolved, so changes south of the border don’t automatically influence LBTT policy. However, the Scottish Government could review LBTT thresholds or rates in the future, especially if there’s pressure to support first-time buyers or match broader market trends.

What does this mean if you're buying in Scotland?

If you plan to purchase a home in Scotland, the Stamp Duty changes in England won’t affect your transaction. But it’s still important to understand the tax you'll pay, especially if you're a first-time buyer or investing in additional properties.

Do you need help calculating what you’ll owe in LBTT or understanding your options? Just get in touch and our conveyancing team at Paris Steele will guide you through every step.