How much Additional Dwelling Supplement (ADS) will I pay on a £280,000 second home in Scotland in 2026/27?

Full answer

The Additional Dwelling Supplement applies in Scotland when you buy an additional residential property — a second home or buy-to-let — and already own another dwelling worth £40,000 or more. ADS is charged at 8% of the entire purchase price, not just the slice above a threshold. On £280,000 that gives £280,000 × 8% = £22,400. ADS sits on top of standard Land and Buildings Transaction Tax (LBTT). LBTT is banded: nothing on the first £145,000, 2% on £145,000–£250,000, and 5% on £250,000–£325,000. For a £280,000 purchase the standard LBTT is (£105,000 × 2%) + (£30,000 × 5%) = £2,100 + £1,500 = £3,600. Note that the £175,000 first-time buyer relief does not apply to additional dwellings, so the standard band starts at £145,000 here. Adding the two together: £3,600 standard LBTT + £22,400 ADS = £26,000 total. (If you qualified for any reduced standard LBTT the ADS figure of £22,400 would still stand, since it is a flat 8% of price.) ADS is reclaimable if you are replacing your main residence: where you buy the new home before selling the old one, you pay ADS up front and can claim it back once the previous main residence sells within the prescribed period (currently 36 months). Regional contrast matters here. In England and Northern Ireland the equivalent SDLT second-home surcharge runs alongside banded main rates. In Wales, Land Transaction Tax applies higher residential rates for additional properties. Scotland's flat 8% ADS on the whole price makes the surcharge unusually large at higher prices, so factor it into any buy-to-let or holiday-home budget before committing.

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