Property Guide -- Updated July 2026
Scotland Additional Dwelling Supplement (ADS) Guide 2026/27
Buying a second home, buy-to-let, or other additional residential property in Scotland means paying an extra 8% Additional Dwelling Supplement on top of standard LBTT. This guide explains how ADS is calculated, when it can be reclaimed, and how it compares with the equivalent surcharge elsewhere in the UK.
What ADS Is
The Additional Dwelling Supplement (ADS) is a surcharge on top of standard Land and Buildings Transaction Tax (LBTT), Scotland's devolved equivalent of Stamp Duty Land Tax, charged when a buyer purchases an additional residential property -- most commonly a second home or a buy-to-let -- rather than their only or main residence. It is administered by Revenue Scotland, separately from HMRC, which administers SDLT for England and Northern Ireland.
How ADS Is Calculated
ADS is currently charged at 8% of the entire purchase price of a liable transaction, in addition to whatever standard LBTT applies under the normal residential bands. This is different from how standard LBTT itself works: standard LBTT is charged in bands, with each band's rate applying only to the portion of the price within that band, whereas ADS applies as a flat percentage across the whole price once a transaction is liable, which can make the ADS charge itself a very significant sum on higher-value additional-property purchases.
Reclaiming ADS Within 36 Months
If you're replacing your main residence but the sale of your old home completes after you've already bought the new one -- so you briefly own two properties -- ADS is charged upfront at the point of purchase, but can be reclaimed from Revenue Scotland if you sell your previous main residence within 36 months of buying the new one. You submit a repayment claim once the sale has completed, with evidence of both transactions. Missing the 36-month deadline generally means the ADS you paid becomes non-refundable, so keep this window firmly in mind if you're buying before selling.
ADS vs the Rest of the UK
All parts of the UK apply some form of additional-property surcharge, but the structures differ. England and Northern Ireland apply a 5% additional property surcharge on top of standard SDLT bands. Scotland's ADS is currently 8% of the full price, a flat surcharge rather than a banded one. Wales takes a different structural approach again, applying its own dedicated higher Land Transaction Tax rate bands to additional properties rather than a single flat percentage surcharge. If you're comparing property costs across UK nations -- for example, considering a buy-to-let near the Scotland-England border -- these structural differences, not just the headline percentage, are worth understanding.
Exemptions and Companies
Companies and other non-individual buyers purchasing residential property in Scotland are generally liable for ADS on the whole transaction and typically cannot access the main-residence-replacement reclaim available to individuals, reflecting the policy aim of discouraging bulk or corporate purchases of housing stock. A number of specific exemptions and reliefs exist beyond this, such as for certain purchases of six or more dwellings in one transaction, but the rules are detailed and change periodically, so check current Revenue Scotland guidance for exemptions relevant to your specific transaction.