Quick answer
The Additional Dwelling Supplement (ADS) is 8% of the whole purchase price, charged on top of LBTT when you buy a home in Scotland for £40,000 or more and will own more than one dwelling at the end of the day of completion.1 On a £300,000 buy-to-let ADS is £24,000, making the total £28,600 with LBTT. If you are replacing your main residence and sell the old one within 36 months, you can claim the ADS back from Revenue Scotland.1 Some transactions where the contract was entered into before 5 December 2024 can still qualify for the previous 6% rate under Revenue Scotland's transitional rules.
Key takeaways
- ADS is 8% of the full price, on top of LBTT, for purchases of £40,000 or more.1
- It applies if you will own more than one dwelling at the end of the day of completion, including property abroad.1
- £300,000 second home: £24,000 ADS plus £4,600 LBTT = £28,600.
- Replacing your main home? Sell the old one within 36 months and you can claim the ADS back.1
- Married couples, civil partners and cohabitants are treated as one unit for ADS.
The Additional Dwelling Supplement (ADS) is the Scottish equivalent of the second-home surcharge in England, but it works differently. Instead of adding a few percentage points to each band, ADS is a flat 8% of the whole purchase price, added on top of normal LBTT. That makes it by far the biggest cost in most Scottish buy-to-let and second-home budgets.
This guide covers when ADS applies, worked figures at common prices, how it treats couples and joint buyers, and how to reclaim it when you are replacing your main home. Figures use the 2026/27 rates. Use the LBTT calculator and choose 'Additional property' for your own price.
Worked examples — home mover typical fees
| Price | England/NI tax | Scotland tax | Wales tax |
|---|---|---|---|
| £300,000 | £5,000 | £4,600 | £4,500 |
| £500,000 | £15,000 | £23,350 | £18,000 |
| £750,000 | £27,500 | £48,350 | £36,750 |
How ADS is calculated
ADS is charged at 8% of the total price, not in slices.1 Normal LBTT is still calculated in bands on top. So a £200,000 buy-to-let pays £1,100 of LBTT plus £16,000 of ADS, a total of £17,100. The rate rose from 6% to 8% for purchases from 5 December 2024. Some transactions where the contract was entered into before 5 December 2024 can still qualify for the previous 6% rate under Revenue Scotland's transitional rules.
There is no ADS on a purchase under £40,000, and ADS is calculated on the price of the dwelling being bought, not on the value of any property you already own.
| Price | LBTT | ADS at 8% | Total tax |
|---|---|---|---|
| £100,000 | £0 | £8,000 | £8,000 |
| £150,000 | £100 | £12,000 | £12,100 |
| £200,000 | £1,100 | £16,000 | £17,100 |
| £250,000 | £2,100 | £20,000 | £22,100 |
| £300,000 | £4,600 | £24,000 | £28,600 |
| £400,000 | £13,350 | £32,000 | £45,350 |
| £500,000 | £23,350 | £40,000 | £63,350 |
2026/27 LBTT bands and 8% ADS, standard (non-first-time buyer) rates.
When ADS applies
Broadly, ADS applies when you buy a dwelling in Scotland for £40,000 or more and, at the end of the day of completion, you own more than one dwelling and are not replacing your main residence.1 Property anywhere in the world counts, including a share in a home.
Typical cases are buying a buy-to-let, a holiday home, a flat for a student child, or a new home before your old one has sold. Companies buying residential property generally pay ADS on every purchase.
The ownership test looks at both partners if you are married, in a civil partnership or living together as if you were. So if your partner already owns a flat, buying a home in your name alone can still attract ADS.
Replacing your main home: pay now, reclaim later
If you buy your new main home before selling the old one, ADS is normally payable at completion. You can then claim it back from Revenue Scotland if you sell the previous main residence within 36 months of buying the new one, it was your main residence at some point in the previous 36 months, and you have lived in the new home as your main residence.1
The 36-month window applies to purchases from 1 April 2024; it was 18 months before that. For joint buyers, only one needs to meet the sale conditions, but both must live in the new home as their main residence.1
The rules are strict and Revenue Scotland has no discretion for exceptional circumstances, so diarise the deadline and ask your solicitor to submit the repayment claim promptly once the old home sells.1 On a £300,000 purchase that claim is worth £24,000.
Buying with someone who already owns a home
If two people buy together and either of them will own another dwelling at the end of the day, ADS usually applies to the whole price, not half of it. A first-time buyer buying with a parent or partner who already owns a home can therefore face the full 8%.
Before you agree how a purchase will be structured, ask a solicitor to run the ADS position. Changing who goes on the title, or the order of sale and purchase, can change the result, but there are anti-avoidance rules and you should not rely on a structure you have not had checked.
ADS compared with England and Wales
England and Northern Ireland add a 5% surcharge to every SDLT band, so a £300,000 second home pays £20,000 in total.2 Wales has a separate table of higher LTT rates running from 5% to 17%, which gives £19,950 at £300,000.3 Scotland's 8% on the full price gives £28,600, the highest of the three at that price.
If you are choosing between properties either side of a border, or comparing investment returns, include the tax in your yield calculation. On a £150,000 buy-to-let, ADS alone is £12,000, which can take years of net rental profit to recover.
Decision framework used by careful buyers
Start with an offer ceiling based on total cash, not headline house price. In practice, buyers who only track deposit and mortgage payments can miss the transaction-cost layer, which is exactly where completions become stressful.
Use a three-pass approach: first estimate tax by nation and buyer type, then add realistic fees, then pressure-test the result by increasing the offer by £10,000 and £25,000. This shows how sensitive your budget is before bidding.
Treat the model as a planning instrument. Final legal liability always sits with official calculators and your conveyancer’s completion statement, but early visibility reduces avoidable surprises.
Practical checklist before making an offer
Confirm your likely buyer status first (home mover, first-time buyer, or additional property). Switching status can alter tax materially at the same price point, so this should be fixed before negotiating.
Collect at least two conveyancing quotes and check what is included. Buyers often compare legal fees without checking disbursements, search packages, leasehold supplements or transfer fees.
Keep a contingency buffer instead of budgeting to the exact minimum. A modest reserve can protect timelines when valuation, legal or lender admin costs move late in the process.
Use the calculator for this topic
Frequently asked questions
What is the ADS rate in Scotland?+
8% of the full purchase price, for purchases from 5 December 2024. It is added on top of normal LBTT and applies to purchases of £40,000 or more.
How much ADS will I pay on a £200,000 property?+
£16,000. With standard LBTT of £1,100, the total tax is £17,100.
Can I get ADS refunded?+
Yes, if you bought a new main home before selling your old one. Sell the previous main residence within 36 months, live in the new home as your main residence, and claim the ADS back from Revenue Scotland.
Does ADS apply if my partner owns a property?+
Usually yes. Married couples, civil partners and cohabiting couples are treated together, so a home owned by your partner counts even if you buy in your sole name.
Is there ADS on property under £40,000?+
No. ADS only applies to purchases of £40,000 or more.
Does owning a home abroad mean I pay ADS?+
It can. ADS looks at dwellings you own anywhere in the world at the end of the day of completion, so a home overseas can trigger it.
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OfficialThe figures and rules on this page are drawn from the official UK government sources below. Rates are the confirmed 2026/27 amounts. Each link opens the relevant official page in a new tab.
- Revenue Scotland: Additional Dwelling Supplement (ADS) revenue.scot/taxes/land-buildings-transaction-tax/additional-dwelling-supplement-ads ADS rate, the £40,000 threshold, ownership tests and repayment claims.
- GOV.UK: SDLT higher rates for additional properties www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property England and Northern Ireland 5% surcharge.
- Welsh Revenue Authority: LTT rates and bands www.gov.wales/land-transaction-tax-rates-and-bands Wales higher residential rates from 11 December 2024.
- Revenue Scotland: Land and Buildings Transaction Tax revenue.scot/land-buildings-transaction-tax Official LBTT rates, bands, first-time buyer relief and 30-day return deadline.
Verified against published UK government guidance. See also Methodology and Editorial standards.