Glossary · UK
What is Additional Dwelling Supplement (ADS)?
A Scottish surcharge added to Land and Buildings Transaction Tax when you buy an additional residential property, charged at 8% of the full purchase price.
Full Definition
The Additional Dwelling Supplement (ADS) is a surcharge on Scotland's Land and Buildings Transaction Tax (LBTT) that applies when an individual buys an additional residential dwelling, such as a buy-to-let, holiday home or second home, while already owning another dwelling anywhere in the world. For 2026/27 the rate is 8% of the total purchase price, charged on the whole consideration rather than just the portion above a threshold, and it is paid on top of the standard LBTT due. ADS generally applies to purchases of £40,000 or more. Where you are replacing your only or main residence, ADS may not apply, or can be reclaimed if your previous main home is sold within an 18-month window, provided the relevant conditions are met. ADS is devolved and specific to Scotland: there is no direct equivalent in England and Northern Ireland, where SDLT operates instead, nor in Wales, where Land Transaction Tax applies with its own higher rates for additional properties. Companies, partnerships and trusts buying residential property can also fall within ADS. Because it applies to the full price, ADS can substantially increase the upfront cost of a Scottish second property, so factor it into any affordability calculation.