Additional Dwelling Supplement Calculator

The Additional Dwelling Supplement is an extra tax charged on purchases of additional residential properties in Scotland. It's 6% of the full purchase price, payable on top of the standard Land and Buildings Transaction Tax (LBTT). It applies to second homes, buy-to-let properties, and holiday homes.

The ADS rate is 6% of the full purchase price for additional residential properties. This rate was increased from 4% in December 2022. Unlike LBTT which is banded, ADS is charged on the entire property value.

You pay ADS when buying an additional residential property in Scotland worth £40,000 or more if you already own another property anywhere in the world. This includes second homes, buy-to-let investments, and properties bought for family members if you retain an interest in another property.

Yes, you may be eligible for an ADS refund if you sell your previous main residence within 18 months of buying your new home. You must claim the refund within 3 years of the ADS payment date. The property sold must have been your only or main residence.

Land and Buildings Transaction Tax (LBTT) is Scotland's property purchase tax, replacing UK Stamp Duty since 2015. Standard rates are: 0% up to £145,000, 2% from £145,001-£250,000, 5% from £250,001-£325,000, 10% from £325,001-£750,000, and 12% above £750,000.

Yes, first-time buyers in Scotland benefit from an increased nil-rate band of £175,000 (compared to £145,000 for other buyers). This means first-time buyers pay no LBTT on properties up to £175,000, potentially saving up to £600.

Scotland's ADS is 6% while England's additional property surcharge is 3%. Both are charged on the full purchase price. However, LBTT bands in Scotland are different from SDLT bands in England, so the total tax can vary significantly between the two nations.

Yes, companies purchasing residential property in Scotland are subject to both LBTT and ADS. The 6% ADS applies to all additional residential property purchases, regardless of whether the buyer is an individual or a company.

Yes. ADS does not apply if: you are buying your only or main residence and selling your previous one at the same time; the property costs less than £40,000; you are a registered social landlord; or the purchase is of a mixed property (part residential, part commercial). Inherited properties may also be exempt in certain circumstances - Revenue Scotland publishes detailed guidance on their website.

If you paid ADS but then sold your previous main residence within 18 months, you can reclaim the ADS. Submit an amendment to your original LBTT return via the Revenue Scotland online portal or by post. The deadline is 3 years from the date of the original ADS payment, not from the date of sale. You will need to provide the sale date and price of the previous property.