What it is
The Additional Dwelling Supplement (ADS) is an extra charge on top of Land and Buildings Transaction Tax when a purchase in Scotland leaves you owning more than one home. It usually counts homes you own anywhere in the world. Revenue Scotland says: For transactions on or after 5 December 2024 the ADS is 8% of the purchase price.
A transitional 6% rate can still apply where the contract was entered into on or before 4th December 2024. It does not apply where the price is under £40,000.
How it is worked out
Unlike LBTT, the supplement is not charged in slices. It is 8% of the whole price, added to the normal LBTT. On a £200,000 buy-to-let the ADS is £16,000 and the normal LBTT is £1,100, so the total is £17,100.
| Price | Normal LBTT | ADS at 8% | Total |
|---|---|---|---|
| £150,000 | £100 | £12,000 | £12,100 |
| £200,000 | £1,100 | £16,000 | £17,100 |
| £250,000 | £2,100 | £20,000 | £22,100 |
| £300,000 | £4,600 | £24,000 | £28,600 |
Replacing your main home
If you buy your new main home before you have sold the old one, you will normally pay the ADS at first. Revenue Scotland says you can claim a repayment if:
a) you sell your previous property within 36 months of the date of buying your new one; and b) the property you sold was your only or main residence at any time in the 36 months before you bought the property that you paid the ADS on; and c) you have lived in the property you paid the ADS on as your only or main residence.
Revenue Scotland adds that it is unable to consider any exceptional circumstances
where those conditions are not met, so check them carefully, with your solicitor, before relying on a repayment.
Special rules apply to joint buyers, spouses, civil partners and cohabitants, so check Revenue Scotland's conditions before relying on a repayment.
England, Northern Ireland and Wales
The rest of the UK charges more for additional homes too, but in different ways: a 5% surcharge on each Stamp Duty band in England and Northern Ireland, and a separate table of higher rates in Wales. Our second homes guide compares all three.