Scotland · Additional Dwelling Supplement
ADS Guide: Scotland's 8% Additional Dwelling Supplement
ADS can add thousands of pounds to a Scottish property purchase. This guide explains when it applies, when it does not, and how a later sale of your previous main home can make it repayable.
- Current rate: 8% since 5 December 2024
- Applies only at £40,000 or more
- Charged on the full purchase price
When ADS applies
ADS may apply when you buy a dwelling in Scotland and, at the end of the day on which the purchase takes effect, you own more than one dwelling and are not replacing your only or main residence.
| Situation | ADS result in a simple case |
|---|---|
| Buying your first home as your only property | No ADS |
| Buying a second home or holiday home | ADS normally applies |
| Buying a buy-to-let while keeping another dwelling | ADS normally applies |
| Selling your main home and buying a replacement on the same day | No ADS, because you are replacing your main residence |
| Buying a replacement main home before selling the old one | ADS may be paid first, then reclaimed if the old main home is sold in time |
| Purchase price below £40,000 | No ADS |
“Own” is wider than many buyers expect. Ownership by a spouse, civil partner or certain connected arrangements can be counted under the economic-unit rules, and joint buyers have their own tests. Do not rely only on whose name is on the new property.
How ADS is calculated
Normal LBTT is worked out in bands. ADS is then calculated separately at 8% of the entire purchase price. There are no ADS bands and no tax-free slice.
| Additional-home price | Normal LBTT | ADS at 8% | Total |
|---|---|---|---|
| £100,000 | £0 | £8,000 | £8,000 |
| £200,000 | £1,100 | £16,000 | £17,100 |
| £300,000 | £4,600 | £24,000 | £28,600 |
| £500,000 | £23,350 | £40,000 | £63,350 |
Older pages may still show the previous 6% rate. At £300,000, using 6% instead of 8% understates ADS by £6,000. Always check the date and source on any calculator you use.
Replacing your main residence
If you sell your previous main residence before buying the replacement, or the sale and purchase complete in the right sequence on the same day, ADS should not be due in a straightforward replacement case.
If you buy first and sell later, ADS may have to be paid in the original LBTT return. It can then be reclaimed when the previous main residence is sold within the permitted period.
Repayment deadlines
- Purchase effective date on or after 1 April 2024: sell the previous main residence within 36 months.
- Purchase effective date up to 31 March 2024: the period is 18 months.
- The sold property must have been your only or main residence at some point during the matching period before the new purchase.
- You must live in the new property as your only or main residence.
Use the ADS reclaim calculator to turn your own purchase and sale dates into a deadline. Revenue Scotland says exceptional circumstances cannot be considered if the repayment conditions are missed.
Joint buyers, partners and complicated cases
ADS is where simple calculators often stop too soon. These situations need the detailed Revenue Scotland rules or professional advice:
- One joint buyer owns another home but the other does not.
- A spouse or civil partner owns a property that the buyer does not personally own.
- More than one dwelling is bought in the same transaction, or multiple dwellings relief is claimed.
- A property is inherited, transferred in a separation, held in trust or bought by a company.
- The old and new homes are in different parts of the UK or outside the UK.
For spouses, civil partners and co-habitants, the repayment rules can allow one buyer to satisfy the sale conditions while both must meet the new-main-residence condition. For transactions from 1 April 2024, joint-buyer rules changed as well. Do not assume a single-buyer answer covers a couple.
How to claim ADS back
- Confirm the sale of the previous main residence completed within the correct 18- or 36-month window.
- Check the exact ADS figure on the original LBTT return — especially if multiple dwellings relief was claimed.
- Within the return amendment period, claim by amending the LBTT return. After that period, use Revenue Scotland's repayment claim route.
- Revenue Scotland aims to process a repayment within 10 working days, but checks or questions can extend that time.
ADS FAQs
What is ADS?
It is the Additional Dwelling Supplement: an extra LBTT charge that may apply when you buy a dwelling and own more than one dwelling at the end of the purchase day.
Why is ADS 8%, not 6%?
The rate increased from 6% to 8% on 5 December 2024. Pages using 6% are out of date unless they are explaining a historical transaction.
Does ADS apply below £40,000?
No. The purchase price must be £40,000 or more for ADS to apply.
Can I reclaim ADS after selling my old home?
Often yes, if the sale is within 36 months for a purchase on or after 1 April 2024, or 18 months for an earlier purchase, and the main-residence conditions are met.
Is ADS charged instead of normal LBTT?
No. It is added on top of the normal band-based LBTT.
Checked: October 2026 · Source: Revenue Scotland — Additional Dwelling Supplement.