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The ADS is an 8% surcharge on the full purchase price of any additional residential property in Scotland over £40,000. It applies to buy-to-let, second homes, and holiday lets. Increased from 6% in December 2024. Unlike standard LBTT, the ADS is charged on the entire price — not just the excess. It can be reclaimed if you sell your previous main residence within 36 months (for purchases from 1 April 2024).
The Additional Dwelling Supplement is a significant upfront cost for anyone buying a second residential property in Scotland — and understanding exactly when it applies is critical before committing to a purchase.
When ADS applies. ADS is due when you own (or part-own) another residential property anywhere in the world on the completion date of the Scottish purchase, and the purchase price exceeds £40,000. "Own" includes properties in which you hold any legal interest — a jointly owned flat, a property held in trust, or property in another country.
The 8% rate. Unlike LBTT, which uses progressive bands, ADS is a flat 8% on the full purchase price. On a £200,000 buy-to-let purchase: ADS = 8% × £200,000 = £16,000. This stacks on top of standard LBTT (which at £200,000 is £1,100), giving a total of £17,100.
History of the rate. ADS was introduced in April 2016 at 3%, raised to 4% in January 2019, then to 6% in December 2022, and again to 8% in December 2024. The Scottish Government has consistently raised the rate to cool the buy-to-let market and improve affordability for owner-occupiers.
The main residence exemption. ADS does not apply if you are simultaneously selling your previous main residence. The "same day" rule means both transactions must complete on the same date. In practice, this often isn't possible — which is where the reclaim comes in.
Reclaiming ADS. If you pay ADS on a purchase from 1 April 2024 onwards and subsequently sell your previous main residence within 36 months of the Scottish purchase, you can claim a full refund from Revenue Scotland. Your solicitor can handle the refund application. The ADS amount is returned in full — there is no partial reclaim based on how long you held both properties.
Joint purchases. If either buyer in a joint purchase owns another residential property, ADS applies to the full transaction. Both buyers must be free of other property interests for ADS to be avoided.
Yes — if you complete on your new property before selling your existing one, ADS is due because you own two properties at that point. For purchases from 1 April 2024, you then have up to 36 months to sell the old property and reclaim the ADS in full. This is common in Scotland's slower-moving market where chains can be complex.
Inherited property counts as ownership for ADS purposes. If you inherit even a small share of a property and then buy another Scottish property without having sold the inherited one, ADS will apply. The same reclaim rules apply — sell the inherited property within 36 months of the purchase (from 1 April 2024) and apply to Revenue Scotland for a refund.
Yes. England charges a 5% surcharge on additional residential properties (from October 2024). Scotland's ADS is 8%. This makes Scottish buy-to-let acquisition costs meaningfully higher than in England, particularly at mid-market price points. The difference at £250,000 is £7,500 (Scotland: £20,000 ADS; England: £12,500 surcharge).