SDLT vs LBTT: Where Scotland Is Cheaper, and Where It Isn’t

"Scotland has cheaper stamp duty" is only true up to a point — literally. LBTT’s higher nil-rate band (£145,000 vs England’s £125,000) makes it the better deal at lower prices, but its steeper mid-tier bands mean that advantage reverses hard once you cross into six-figure territory. Here’s exactly where.

The crossover, in real numbers

Same standard (non-FTB) purchase, at four price points:

PriceEngland/NI (SDLT)Scotland (LBTT)Cheaper in
£150,000£500£100Scotland, by £400
£250,000£2,500£2,100Scotland, by £400
£400,000£10,000£13,350England/NI, by £3,350
£600,000£20,000£33,350England/NI, by £13,350

The gap flips somewhere between £250,000 and £400,000, and widens fast above that — by £600,000, LBTT costs 67% more than SDLT would on the identical purchase.

Why: Scotland’s 10% band starts earlier

SDLT’s 5% band runs all the way from £250,001 to £925,000 — a long, flat middle tier. LBTT instead moves to 10% at just £325,001, double the rate over a much wider slice of a typical family-home purchase. That's the entire mechanism behind the crossover.

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Frequently Asked Questions

Does this affect the mortgage itself, or just the duty?+
Only the duty — monthly repayments depend purely on loan amount, rate and term, identical in both regions. It's the one-off tax on top that differs.
Is first-time buyer relief affected by the same crossover?+
It shifts the whole comparison in England/NI's favour even further — FTB relief there covers £0–£300,000 entirely tax-free, versus Scotland's much smaller £145,000→£175,000 band uplift.