Real Estate · Scotland

Scotland's Additional Dwelling Supplement (ADS) 2026: the 8% Surcharge

If you're buying a second home or buy-to-let in Scotland, the Additional Dwelling Supplement (ADS) is usually the biggest line on the bill — bigger than the LBTT itself. At 8% of the whole price, it dwarfs England's 5% surcharge. Here's exactly how it works.

What ADS is and how much it costs

ADS is a surcharge added on top of standard Land and Buildings Transaction Tax when, at the end of the transaction, you own more than one residential property and aren't replacing your main home. Key facts:

• The rate is 8% (it rose from 6% to 8% on 5 December 2024).
• It's charged on the entire purchase price — a flat 8%, not a banded calculation.
• It only applies where the property costs £40,000 or more.
• Properties you own anywhere in the world count when deciding if this is an "additional" dwelling.

Worked example: £250,000 second home

On a £250,000 additional property in Scotland:

Component	Amount
Standard LBTT (0% to £145k, 2% to £250k)	£2,100
ADS (8% of £250,000)	£20,000
Total	£22,100

The ADS alone (£20,000) is almost ten times the LBTT (£2,100) — which is why second-home buyers in Scotland feel it so sharply.

Getting ADS back: the 18-month rule

If you're buying a new main home but haven't sold the old one yet, you'll pay ADS upfront because you temporarily own two homes. You can reclaim it if you sell your previous main residence within 18 months of the new purchase. (Note this is shorter than England's 36-month window.) Claims are made to Revenue Scotland, usually via an amended LBTT return.

ADS is not a surcharge in the way England's is

England adds five percentage points to each SDLT band. Scotland does something structurally different and considerably harsher: ADS is 8% of the entire purchase price, charged from the first pound, on top of any LBTT due.

There is no nil-rate portion and no taper. On a £250,000 second property the ADS alone is £20,000, before a penny of LBTT. That single feature makes Scotland the most expensive of the three UK systems for an additional dwelling at almost every price point.

When it applies

• The price is £40,000 or more. Below that, no ADS.
• At the end of the transaction you (or your spouse, civil partner or cohabitant, counted together) own more than one residential property anywhere in the world — not just in Scotland.
• You are not replacing your only or main residence.

The worldwide test catches people who kept a flat abroad, or inherited a share of a family home. A part share counts if it is worth £40,000 or more.

The trap: buying before you sell

If your purchase completes before your existing home sells, you own two properties on completion day and ADS is payable in full, even though you are plainly replacing a main residence.

It is reclaimable if you sell the previous main residence within 18 months. Two things about that:

• You have to fund it in cash at completion. It cannot be added to the mortgage, and on a £300,000 purchase that is £24,000 you need available and then tied up for up to a year and a half.
• The repayment is claimed, not automatic. Revenue Scotland will not refund it because the sale happened; you or your solicitor must submit an amended return, and there is a deadline for doing so.

Reliefs and exclusions worth knowing

• Joint buyers. If any buyer triggers ADS, it applies to the whole transaction, not their share of it.
• Inherited property. An inheritance received after you concluded missives does not trigger ADS on that purchase.
• Divorce and separation. There are specific provisions where a former matrimonial home is involved.
• Six or more dwellings in one transaction can be treated as non-residential, which changes the calculation entirely.

What it means for the numbers

For a buy-to-let, ADS is usually the single largest entry cost and materially lengthens the period before the investment breaks even. Model it as an upfront capital cost you will not recover on sale — unlike the deposit, it buys you no equity. Combined with the loss of full mortgage interest relief for individual landlords, it is the main reason Scottish buy-to-let arithmetic has tightened.

Frequently asked questions

What is the Additional Dwelling Supplement in Scotland?
The Additional Dwelling Supplement (ADS) is a surcharge on top of Land and Buildings Transaction Tax (LBTT) when you buy an additional residential property in Scotland — a second home or buy-to-let. It is 8% of the whole purchase price for properties costing £40,000 or more.

How much is ADS in 2026?
ADS is 8% of the entire purchase price (it rose from 6% to 8% on 5 December 2024). On a £250,000 second home that is £20,000 of ADS, on top of the standard LBTT.

Can I get the ADS back?
Yes, if you were replacing your main home. If you pay ADS because you had not yet sold your previous main residence, you can claim a repayment if you sell it within 18 months of the new purchase.

Stamp duty across the UK

• Scotland — LBTT guide · calculator
• England & NI — SDLT surcharges · calculator
• Wales — LTT guide · calculator

Compare all three in the UK stamp duty hub.

ADS is the purchase cost. On disposal, capital gains tax applies UK-wide at the same rates and the same 60-day deadline.

Sources

• Revenue Scotland — Additional Dwelling Supplement (rate, £40,000 threshold, repayment)
• gov.scot — Scottish Budget: ADS rate 8% from 5 December 2024

Figures as of June 2026. Rates and rules change at Scottish Budgets — verify on revenue.scot before exchanging. General information, not regulated financial advice (FCA).