Scottish LBTT Additional Dwelling Supplement: Worked Example 2026/27
A full worked calculation of Land and Buildings Transaction Tax plus the 8% Additional Dwelling Supplement on a Scottish second home purchase in 2026/27, band by band.
How LBTT and the ADS combine
Buying an additional residential property in Scotland — a second home, holiday let, or buy-to-let investment — means paying two separate charges: the standard Land and Buildings Transaction Tax (LBTT), calculated band by band on the purchase price, plus the Additional Dwelling Supplement (ADS), an extra flat 8% applied to the entire purchase price.
The standard LBTT bands for 2026/27 are:
| Band | Rate |
|---|---|
| £0 – £145,000 | 0% |
| £145,000 – £250,000 | 2% |
| £250,000 – £325,000 | 5% |
| £325,000 – £750,000 | 10% |
| Above £750,000 | 12% |
The ADS then adds 8% of the full purchase price on top — critically, the ADS is not banded like standard LBTT; it applies to every pound of the price, not just the amount above a starting threshold.
Full worked example
Scenario: A buyer purchases a second home in Edinburgh for £380,000, already owning their main residence.
Step 1 — standard LBTT (banded):
| Band | Amount in band | Rate | Tax |
|---|---|---|---|
| £0 – £145,000 | £145,000 | 0% | £0 |
| £145,000 – £250,000 | £105,000 | 2% | £2,100 |
| £250,000 – £325,000 | £75,000 | 5% | £3,750 |
| £325,000 – £380,000 | £55,000 | 10% | £5,500 |
| Standard LBTT total | £11,350 |
Step 2 — Additional Dwelling Supplement:
ADS = 8% × £380,000 = £30,400
Step 3 — total tax due:
£11,350 (standard LBTT) + £30,400 (ADS) = £41,750
This is a significant sum — notice that the ADS alone (£30,400) is nearly three times larger than the entire standard LBTT bill (£11,350) on this purchase, illustrating just how much of the total tax bill on a Scottish second home comes from the supplement rather than the underlying bands.
Why the ADS is charged on the whole price, not just the excess
This is the detail that most often confuses buyers coming from England, where the equivalent 5% additional property surcharge is also applied to the whole price, but people sometimes assume (incorrectly) that supplements only bite above a starting threshold, the way the main bands do. In Scotland, the 8% ADS is calculated on the entire consideration paid for the property from £1, with no nil-rate starting slice specific to the supplement itself.
Reclaiming the ADS when replacing a main residence
The ADS is specifically targeted at additional properties, not at someone who is simply moving house and briefly owns two properties during the transition (for example, buying a new main home before completing the sale of the old one). In this situation, the buyer initially pays the ADS along with the rest of the tax bill, but can reclaim it if they sell their previous main residence within 18 months of the new purchase completing. This prevents the supplement unfairly penalising ordinary home-movers who are not genuinely acquiring an additional property for investment or second-home use.
How Scotland compares with England, Wales and Northern Ireland
| Nation | Additional property surcharge | Applied to |
|---|---|---|
| Scotland (LBTT ADS) | 8% | Entire purchase price |
| England / Northern Ireland (SDLT) | 5% | Entire purchase price |
| Wales (LTT higher rates) | Additional bands on top of standard rates | Entire purchase price |
Scotland's 8% ADS rate is notably higher than the 5% surcharge south of the border, making the tax cost of buying a second home or investment property in Scotland proportionally heavier than an equivalent purchase in England or Northern Ireland, even before accounting for the different underlying band structures.
LBTT Calculator — Scotland
Calculate Land and Buildings Transaction Tax (LBTT) for property purchases in Scotland, including first-time buyer relief and Additional Dwelling Supplement (ADS).
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Open Buy-to-Let calculatorFrequently asked questions
What is the Additional Dwelling Supplement in Scotland?
The Additional Dwelling Supplement (ADS) is an extra 8% Land and Buildings Transaction Tax charge applied to the full purchase price of a second home, buy-to-let property, or other additional residential property bought in Scotland, on top of the standard LBTT bands.
Is the Additional Dwelling Supplement charged on the whole price or just the amount above a threshold?
The ADS is charged on the entire purchase price from £1, not just the amount above a threshold, which makes it different from the main LBTT bands, which only tax the portion of the price falling within each band.
Can I get the Additional Dwelling Supplement refunded?
Yes, if you sell your previous main residence within 18 months of buying the new property, you can normally reclaim the ADS paid, since the supplement is intended to apply only to genuine additional properties, not to someone replacing their main home while briefly owning two properties.
Does the Additional Dwelling Supplement apply to first-time buyers?
No, provided the property being bought is the buyer's only residential property. The ADS only applies where the buyer will own two or more residential properties after the purchase completes, so a genuine first-time buyer with no other property does not pay it.
How does the Scottish ADS compare with the equivalent surcharges in England and Wales?
Scotland's ADS rate of 8% is higher than the additional property surcharge in England and Northern Ireland (5%), but broadly similar in principle to Wales's higher residential rates for additional properties, all of which apply an extra flat percentage on top of the standard rates for people buying a second or additional residential property.
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