What is the Additional Dwelling Supplement in Scotland?
The Additional Dwelling Supplement (ADS) is an additional property transaction tax that may apply when purchasing certain residential properties in Scotland.
It is charged in addition to standard Land and Buildings Transaction Tax (LBTT). ADS commonly arises when a buyer acquires an additional dwelling while retaining ownership of another residential property.
However, not every second-property transaction is automatically subject to ADS. Liability depends on the relevant ownership, residence and transaction rules.
Scotland ADS rate for 2026/27
Applied to the relevant consideration for transactions where ADS is due.
The consideration threshold relevant to the ADS rules, subject to the statutory conditions.
ADS is generally calculated on the relevant purchase consideration rather than using progressive LBTT bands.
For a qualifying transaction, an illustrative calculation is:
ADS = Purchase price × 8%
Standard residential LBTT bands in Scotland
Standard LBTT is calculated progressively. Each percentage applies only to the portion of the price within its band.
| Property price band | Standard LBTT rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Above £750,000 | 12% |
These are the standard residential LBTT bands used in the illustrative calculations on this page. Special transactions and reliefs may be treated differently.
How is total LBTT plus ADS calculated?
For a qualifying additional dwelling, the simplified total is:
Total property tax = Standard LBTT + ADS
First, standard LBTT is calculated using the applicable residential bands. Then ADS is calculated separately and added to the standard tax.
Scotland ADS worked examples
Example 1: £300,000 additional property
- Purchase price: £300,000
- LBTT on first £145,000: £0
- LBTT on next £105,000 at 2%: £2,100
- LBTT on next £50,000 at 5%: £2,500
- Standard LBTT: £4,600
- ADS at 8%: £24,000
Total estimated LBTT plus ADS: £28,600
Example 2: £200,000 additional property
- Purchase price: £200,000
- Standard LBTT: £1,100
- ADS at 8%: £16,000
Total estimated LBTT plus ADS: £17,100
Example 3: £500,000 additional property
- Purchase price: £500,000
- Standard LBTT: £23,350
- ADS at 8%: £40,000
Total estimated LBTT plus ADS: £63,350
Does ADS apply below £40,000?
The ADS rules include a £40,000 consideration threshold. For ordinary standalone transactions below that amount, ADS generally does not apply.
However, linked transactions and special circumstances may affect the treatment. The price alone is not enough to determine every case.
When might Scotland ADS apply?
ADS may be relevant when a buyer acquires a residential property and owns another dwelling, depending on the statutory ownership and residence tests.
Examples can include buying a second home, purchasing an additional investment property or acquiring a new residence before disposing of an existing one.
The rules can also differ for certain company purchases, joint purchasers and other ownership structures.
Replacing your main residence
Buying a new main residence while retaining an existing one can create ADS implications.
Depending on the circumstances, the purchase may qualify for an exemption or an ADS repayment after the previous main residence is sold within the applicable period.
The precise conditions and time limits should be checked against Revenue Scotland guidance.
Can Scotland ADS be refunded?
Some buyers who pay ADS may subsequently qualify for repayment, particularly in qualifying main-residence replacement situations.
A repayment is not automatic. Eligibility, deadlines and documentary requirements apply.
This calculator does not assess refund eligibility or calculate repayment claims.
How to use this Scotland ADS Calculator
- Enter the purchase price of the Scottish residential property.
- Select Calculate.
- Review the estimated standard LBTT and ADS liability.
- Check whether ADS actually applies to your ownership circumstances.
- Confirm the final tax amount with Revenue Scotland guidance or your conveyancer.
Scotland ADS versus stamp duty elsewhere in the UK
Scotland uses Land and Buildings Transaction Tax (LBTT) and Additional Dwelling Supplement (ADS).
England and Northern Ireland use Stamp Duty Land Tax (SDLT), while Wales uses Land Transaction Tax (LTT).
The rates, thresholds and additional-property rules differ between these systems. A calculator for one jurisdiction should not be used for a property in another jurisdiction.
Official Revenue Scotland guidance
For the current rules, reliefs, repayment conditions and transaction requirements, see Revenue Scotland – Additional Dwelling Supplement .
Tax treatment can depend on the effective transaction date and individual circumstances.
Frequently asked questions
What is the Scotland ADS rate?
The rate described in this calculator is 8% of the relevant consideration for transactions where ADS applies.
Is ADS charged instead of LBTT?
No. ADS is generally an additional charge on top of standard LBTT.
Does every second home purchase attract ADS?
Not necessarily. The rules depend on ownership, residence and other statutory conditions.
Does ADS apply to a £30,000 property?
A standalone transaction below the £40,000 threshold generally falls outside the ordinary ADS charge, although linked transactions and special cases require care.
Can I reclaim ADS after selling my previous home?
Some qualifying main-residence replacement transactions may be eligible for an ADS repayment. Conditions and deadlines apply.
Is ADS the same as higher-rate SDLT?
No. ADS applies under Scotland's LBTT system, while SDLT is the property transaction tax used in England and Northern Ireland.
Does this calculator determine ADS eligibility?
No. It estimates the tax for a transaction assumed to be subject to ADS.
Related UK property calculators
Important: This is a planning estimate, not an official tax assessment. ADS liability, reliefs, repayments and final LBTT can depend on transaction details, ownership arrangements, timing and other statutory conditions.
Maintained by the CalculatorsOnline Editorial Team. Read our editorial and methodology policy .