The Additional Dwelling Supplement (ADS) is a surcharge of 8% of the price, payable on top of normal LBTT, when you buy an additional residential property in Scotland. It rose from 6% to 8% on 5 December 2024 and is reported as unchanged for 2026 to 2027. It applies to second homes and buy-to-let purchases, and also catches some people who are simply moving house but have not yet sold their old one.
When ADS applies
In broad terms, ADS is due when you buy a residential property costing £40,000 or more and, when the purchase completes of purchase, you own another residential property worth £40,000 or more that you are not replacing. Ownership counts even if the other home is outside Scotland. Where a couple buys together, the position of each buyer matters. Revenue Scotland sets out the full tests, including treatment of spouses, partners and shares in a property, so read its guidance or ask your solicitor rather than relying on a summary.
- A second home or holiday home: ADS applies.
- A buy-to-let flat for a landlord who already owns a main home: ADS applies.
- A buyer who owns nothing else: no ADS.
- A move where you have not yet sold your old home: ADS is charged at purchase but may be reclaimed.
The cost in numbers
ADS is a percentage of the whole price, not a slice, and it comes on top of the standard LBTT bill. At £200,000, for example, standard LBTT is £1,100 and ADS at 8% is £16,000, a total of £17,100. Some online summaries list tiered ADS rates by price band, so use Revenue Scotland's own calculator for the figure you will actually pay.
| Price | Standard LBTT | ADS at 8% | Total |
|---|---|---|---|
| £150,000 | £100 | £12,000 | £12,100 |
| £200,000 | £1,100 | £16,000 | £17,100 |
| £300,000 | £4,600 | £24,000 | £28,600 |
Standard LBTT in this table uses the rates in LBTT rates and first-time buyer relief. First-time buyer relief does not apply to an ADS purchase.
Replacing your main residence and reclaiming ADS
If you buy a new main home before selling your old one, you will typically pay ADS up front and can claim it back when the old home is sold, provided the conditions are met. The time allowed to sell and claim has been extended in some cases for purchases from 1 April 2024, from 18 months to 36 months. The old home must have been your main residence, and the new one must become your main residence. You apply to Revenue Scotland for the repayment, after which the money comes back to you, so cash flow matters: you need the ADS sum available at settlement.
Paying ADS up front on a purchase with a sale pending can mean tens of thousands of pounds tied up for months. Ask your solicitor how much you would have to find and for how long, and ask your lender whether it is comfortable with the timing.
Filing and getting it right
The ADS is declared on the same LBTT return, which must be filed within 30 days of the date of entry. Mistakes can lead to penalties and interest, so give your solicitor a full account of everything you own anywhere, including shares in inherited property. If you are working out whether a purchase makes sense, the costs of buying a home in Scotland lists the remaining items, and first-time buyer mortgages in Scotland explains what lenders check.
Situations that catch people out
- Buying before selling. You own your current home when you complete on the new one, so ADS is charged up front.
- A partner who already owns a home. Ownership by a spouse or partner can count in some cases, so say so when you instruct your solicitor.
- An inherited share. An interest in a residential property you inherited can mean you are treated as owning another dwelling.
- Buying for a family member. Whether ADS applies depends on who the buyer is and what they already own, so check before the purchase rather than after.
None of these is a certain outcome, because the tests turn on the details. The practical lesson is to give your solicitor a complete list of every property interest held by every buyer, anywhere in the world, before the offer is made.
Landlords and investors
For a buy-to-let purchase the 8% supplement comes straight off your return, and so does the cash you need at settlement. Work it into your yield calculation along with LBTT, legal fees, any repairs and lender requirements, which for buy-to-let are different from owner-occupier lending. Rental rules and tax treatment of rental income are separate topics, and a Scottish solicitor or accountant can advise on them.
This is general information, not tax or legal advice. ADS rules are detailed, so confirm your own position with a Scottish solicitor or Revenue Scotland.
Frequently asked questions
Is ADS charged on the whole price?
Yes. It is a percentage of the total price, added to the normal LBTT calculation.
Can I get ADS back?
If you were replacing your main residence and sell the old one within the allowed time, you can apply to Revenue Scotland for repayment.
Does ADS apply to cheap properties?
Purchases below £40,000 are reported as outside ADS, but check the current threshold with Revenue Scotland.
Does first-time buyer relief apply with ADS?
No. A buyer who owns another dwelling is not a first-time buyer.