Property taxes in Scotland totalled £717.2m over the past year, according to new analysis by DJ Alexander Ltd of the latest government statistics.
Revenue from Land and Buildings Transaction Tax (LBTT) rose 17.3% year-on-year between September 2024 and August 2025, equating to £1.96m collected per day. The increase represents an additional £106m compared to the same period the previous year.
A significant portion – £222.3m (or 31.9% of the total) – came from the Additional Dwelling Supplement (ADS), which applies to property investors, landlords, and second home buyers. This figure is £59.4m higher than the year before.
The bulk of LBTT revenue was generated by higher-value residential sales. Properties sold for over £325,001, which incur a 10% levy, accounted for £410.8m – or 83% of the total £494.9m raised from residential LBTT (excluding ADS). There were 19,760 such transactions, with an average tax bill of £20,789 per property.
David Alexander, chief executive officer of DJ Alexander Scotland, commented: “The tax take from Scottish homebuyers continues to reach higher and higher levels each year with the latest 12-month period achieving a record total. With almost £2m a day being collected from homebuyers it is extraordinary that so much tax is being levied on a relatively small proportion of the population.”
“That almost a third of this – a total of £222.3m – comes from landlords and second home buyers is further evidence of just how crucial this group is in maintaining high levels of taxable income for the Scottish Government. The appetite for buying Scottish homes remains undimmed for property investors, landlords and second homeowners despite ADS taxation increasing from 6 to 8% last year.”
“The Institute for Fiscal Studies (IFS), along with many private investors who are desperate to invest in Scotland, believes that the current LBTT policy is more likely to reduce investment activity north of the border. At a time when there has never been a greater need for more private investment in housing in Scotland this level of taxation is unlikely to encourage financial growth.”
Alexander continued: “Yet these figures also highlight how enthusiastic many property investors and landlords are to buy in Scotland. These figures indicate serious investment interest despite the additional taxation. Imagine the possibilities were the tax position to ease substantially and be level with our English counterparts?
“Scotland undoubtedly remains a key location for property investors who see the buoyancy of the market, the high demand, and the potential for growth in the future.
“If the tax position were more relaxed and equivalent to the rest of the UK, then this would be a market with major growth potential in the future. Until then we must rely on the continued generosity of property investors and landlords to financially support the Scottish market by agreeing to pay these not insubstantial sums of taxation.”
Read the orginal article: https://propertyindustryeye.com/significant-growth-in-property-taxes-collected-over-last-12-months/
