Answers · UK 2025/26
What is the Additional Dwellings Supplement (ADS) in Scotland for 2026/27?
The Additional Dwellings Supplement (ADS) is a Scottish surcharge on Land and Buildings Transaction Tax (LBTT) for buyers purchasing an additional residential property. The ADS rate is 8% of the total purchase price, charged on top of standard LBTT rates.
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The Additional Dwellings Supplement (ADS) applies to buyers in Scotland who purchase a second or subsequent residential property costing £40,000 or more, where they will own more than one residential property after completion. Rate and calculation: - ADS is charged at 8% of the full purchase price (not just the portion above any threshold). - It is charged on top of the standard LBTT rates, which apply in bands. - Example: buying a £300,000 second home attracts ADS of £24,000 (8% x £300,000) plus the applicable LBTT on the purchase price. Who is affected: - Buy-to-let investors buying additional properties. - People buying a second home or holiday home. - People who have not yet sold their previous main residence by the time of purchasing a new one (they may be eligible for a refund if the previous home is sold within 36 months). Exemptions and reliefs: - Purchases under £40,000 are exempt. - If the buyer replaces their main residence and sells the previous one within 36 months of the new purchase, they can reclaim the ADS from Revenue Scotland. - Certain transactions involving inherited properties or court orders may be exempt. - Companies buying properties may have different rules. Scottish context: ADS is administered by Revenue Scotland (not HMRC). It is separate from the 3% SDLT surcharge that applies in England and Northern Ireland, and the higher rates for additional dwellings in Wales. The ADS rate was increased from 6% to 8% in December 2024, making Scottish purchases of additional homes among the most heavily surcharged in the UK.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.