Glossary · UK
What is Additional Dwelling Supplement?
A surcharge added to Scotland's Land and Buildings Transaction Tax when you buy an additional residential property, such as a second home or buy-to-let.
Full Definition
The Additional Dwelling Supplement (ADS) is a surcharge that applies in Scotland on top of Land and Buildings Transaction Tax (LBTT) when an individual buys an additional residential dwelling, for example a second home, holiday property or buy-to-let, and at the end of the day they own more than one dwelling. Companies buying residential property typically pay ADS too. It is charged as a percentage of the full purchase price above a low minimum threshold, and is collected by Revenue Scotland alongside the main LBTT. If you replace your only or main residence, ADS may not apply, and there are time-limited rules allowing a refund where you sell your previous main home after buying the new one. ADS is distinct from the equivalent surcharges in England (SDLT higher rates) and Wales (LTT higher rates). Because the rate and thresholds change, check the current ADS percentage on the Revenue Scotland website before budgeting for a purchase.