On this page
- How to use the ADS calculator
- What is the Additional Dwelling Supplement?
- ADS rates since 2016
- How ADS is calculated, with examples
- When does ADS apply?
- When ADS does not apply
- Buying before you sell: reclaiming ADS within 36 months
- What ADS means for buy to let investors
- ADS compared with England and Wales
- Paying ADS and the LBTT return
- Frequently asked questions
The Additional Dwelling Supplement (ADS) is an extra 8% of the whole purchase price, charged on top of Land and Buildings Transaction Tax when you buy an additional home in Scotland for £40,000 or more. On a £200,000 buy to let, that is £16,000 of ADS plus £1,100 of standard LBTT, so £17,100 in total. Use the ADS calculator above to check your own purchase.
How to use the ADS calculator
The calculator asks the same questions Revenue Scotland uses to decide whether the supplement applies. Your total updates as you answer.
- Who is buying. Choose a company if the property is being bought by a limited company or another non-individual buyer, such as certain trusts. Companies pay ADS on every purchase.
- Purchase price. Type the price or use the slider. The quick buttons load the average flat price in Aberdeen, Dundee, Glasgow and Edinburgh from the latest ONS figures.
- Other homes you own. Answer yes if you, a joint buyer, or your spouse, civil partner or cohabiting partner will own another residential property worth £40,000 or more anywhere in the world at the end of the day you buy.
- What the property is for. A buy to let or second home always attracts ADS when you own another home. A new main home may not, depending on what happens to your old one.
- Your previous main home. If you are replacing your main residence, tell the calculator whether you have sold it, are selling it or are keeping it. Add your date of entry to see the last day you can sell and still reclaim the ADS.
The result shows the ADS, the standard LBTT, the total tax as a percentage of the price, and the cash you need once your deposit is added. Open LBTT band by band to see exactly how the figure is worked out, or copy a link to your result to share with your solicitor or broker.
What is the Additional Dwelling Supplement?
The Additional Dwelling Supplement is part of Land and Buildings Transaction Tax, the Scottish tax that replaced Stamp Duty Land Tax in Scotland in April 2015. It was introduced on 1 April 2016 to give people buying a home to live in a fairer chance against buyers adding to a portfolio, such as buy to let investors and second home owners. It is set by the Scottish Government and collected by Revenue Scotland.
Unlike standard LBTT, ADS is not charged in bands. It is a flat percentage of the total price, so it starts from the first pound. That is why a modest flat that pays no standard LBTT at all can still carry several thousand pounds of ADS.
ADS rates since 2016
The rate has risen three times. The rate you pay depends on the effective date of your purchase, which is usually the date of entry, and on when you entered into the contract.
| Effective date | ADS rate |
|---|---|
| 1 April 2016 to 24 January 2019 | 3% |
| 25 January 2019 to 15 December 2022 | 4% |
| 16 December 2022 to 4 December 2024 | 6% |
| 5 December 2024 onwards | 8% |
There is a transitional rule for the latest rise. If you entered into the contract on or before 4 December 2024, you pay 6% even if your purchase completed on or after 5 December 2024. All new purchases now pay 8%.
How ADS is calculated, with examples
Work out ADS in two steps. First, standard LBTT is charged in bands on the price: 0% up to £145,000, 2% from £145,001 to £250,000, 5% from £250,001 to £325,000, 10% from £325,001 to £750,000 and 12% above £750,000. Second, ADS adds 8% of the whole price. Taken together, every pound in each band is effectively taxed at the rates below.
| Part of the price | Standard LBTT | With 8% ADS |
|---|---|---|
| Up to £145,000 | 0% | 8% |
| £145,001 to £250,000 | 2% | 10% |
| £250,001 to £325,000 | 5% | 13% |
| £325,001 to £750,000 | 10% | 18% |
| Over £750,000 | 12% | 20% |
Here is what that means in pounds at typical buy to let prices.
| Purchase | Price | Standard LBTT | ADS at 8% | Total tax | Share of price |
|---|---|---|---|---|---|
| Aberdeen flat | £95,000 | £0 | £7,600 | £7,600 | 8.0% |
| Dundee flat | £102,000 | £0 | £8,160 | £8,160 | 8.0% |
| Glasgow flat | £164,000 | £380 | £13,120 | £13,500 | 8.2% |
| Edinburgh flat | £245,000 | £2,000 | £19,600 | £21,600 | 8.8% |
| Example | £150,000 | £100 | £12,000 | £12,100 | 8.1% |
| Example | £200,000 | £1,100 | £16,000 | £17,100 | 8.6% |
| Example | £250,000 | £2,100 | £20,000 | £22,100 | 8.8% |
| Example | £300,000 | £4,600 | £24,000 | £28,600 | 9.5% |
| Example | £400,000 | £13,350 | £32,000 | £45,350 | 11.3% |
| Example | £500,000 | £23,350 | £40,000 | £63,350 | 12.7% |
Source: city prices are average flat prices for August 2026 from the ONS (Housing prices in your area, updated 21 October 2026). Tax worked out using the 2026–27 LBTT bands and the 8% ADS rate.
Worked example: a £200,000 buy to let
Standard LBTT: 0% on the first £145,000 is £0, and 2% on the next £55,000 is £1,100.
ADS: 8% of £200,000 is £16,000.
Total paid to Revenue Scotland: £17,100. With a 25% deposit of £50,000, you need £67,100 before legal fees, Registers of Scotland dues and lender fees.
When does ADS apply?
For individuals, ADS applies when all of the following are true at the end of the day of the purchase:
- The property you are buying is a dwelling and costs £40,000 or more.
- You, or any joint buyer, own another dwelling worth £40,000 or more anywhere in the world. From 1 April 2024, a share in a jointly owned property only counts if your share is worth £40,000 or more.
- You are not replacing your only or main residence.
Some groups are treated in particular ways:
- Couples. Married couples, civil partners and cohabiting partners are treated as one unit. If your partner owns a home, it counts, even if only you are buying.
- Joint buyers. If any buyer already owns a home, ADS applies to the whole purchase, and all buyers are liable for it.
- Companies. Companies and other non-individual buyers, including certain trusts, pay ADS on every residential purchase of £40,000 or more, even if they own nothing else. An individual buying jointly with a company is also liable.
When ADS does not apply
ADS does not apply in these situations:
- First-time buyers. If you have never owned a dwelling anywhere in the world, you do not pay ADS.
- Replacing your main home. If you sold your only or main residence in the 36 months before buying your new main home (18 months for purchases before 1 April 2024), ADS does not apply.
- Low value property. Purchases under £40,000 do not attract ADS, and other homes worth under £40,000 are ignored when deciding whether you own another dwelling.
- Six or more dwellings. Buying six or more separate dwellings in a single transaction gets 100% relief from ADS. Standard LBTT is still due.
- Gifts and inheritances. A dwelling you are given or inherit does not attract ADS, because there is no purchase. It does count as a home you own the next time you buy.
- Non-residential property. ADS only applies to dwellings, so a shop or office does not attract it.
Tip
ADS is decided at the end of the effective date. Selling your old home on the same day you complete on the new one, or before, means you never pay the supplement in the first place.
Buying before you sell: reclaiming ADS within 36 months
If you buy a new main home before selling the old one, you pay ADS at completion. You can then reclaim it if you sell your previous main home within 36 months of the purchase (18 months for purchases with an effective date before 1 April 2024). To qualify, the old property must have been your only or main residence at some point in that period, and you must live in the new one as your main residence.
Your solicitor can amend the LBTT return or make a repayment claim to Revenue Scotland once the sale completes. Repayments are made with interest at the higher of 0.5% a year and the Bank of England base rate. Revenue Scotland cannot extend the deadline for exceptional circumstances, so it is worth diarising the date the calculator gives you. Our guide to reclaiming ADS walks through the claim step by step.
What ADS means for buy to let investors
ADS is now the biggest up-front tax on a Scottish buy to let, and it changes the maths of a purchase in three ways.
- More cash up front. On a £164,000 Glasgow flat, the ADS of £13,120 adds almost a third on top of the £41,000 deposit that lenders usually ask for at 75% loan to value.
- A lower return on your cash. Because ADS is paid in cash, it dilutes the return on the money you put in. Lower-priced flats in Aberdeen and Dundee carry less ADS in pounds, which is one reason their yields look strong.
- No way round it with a company. Buying through a limited company does not avoid ADS. Companies pay it on their first purchase as well as every one after.
When you sell, LBTT and ADS count as part of the cost of acquiring the property, so they can reduce the gain for Capital Gains Tax purposes. They cannot be set against rental income. See our guides to how much deposit you need and whether buy to let is profitable in 2026 for the full picture.
ADS compared with England and Wales
Scotland charges more on additional homes than anywhere else in the UK. In England and Northern Ireland, buyers of additional homes pay a 5% surcharge on top of Stamp Duty Land Tax. In Wales, Land Transaction Tax has separate higher rates for additional homes, starting at 5%.
| Price of an additional home | Scotland (LBTT and ADS) | England (SDLT and 5% surcharge) | Wales (LTT higher rates) |
|---|---|---|---|
| £150,000 | £12,100 | £8,000 | £7,500 |
| £200,000 | £17,100 | £11,500 | £10,700 |
| £300,000 | £28,600 | £20,000 | £19,950 |
| £500,000 | £63,350 | £40,000 | £42,450 |
Sources: Revenue Scotland, GOV.UK (Stamp Duty Land Tax residential property rates) and Welsh Government (Land Transaction Tax rates and bands), checked 27 October 2026.
Paying ADS and the LBTT return
You do not pay ADS separately. Your solicitor includes it on the LBTT return, which must be submitted to Revenue Scotland, with the tax paid, within 30 days of the effective date. In practice, most solicitors ask for the tax in cleared funds before settlement, so build ADS into your budget from the start rather than expecting to pay it later.
Rates can change
The Scottish Budget on 3 December 2026 could change LBTT or ADS rates. We will update this ADS calculator if it does. Always check the final figure with your solicitor before you commit.
Frequently asked questions
No. Land and Buildings Transaction Tax (LBTT) is the tax on buying property in Scotland. It is charged in bands, with nothing to pay on the first £145,000 of a home. The Additional Dwelling Supplement is an extra 8% charged on top of LBTT when you buy an additional home. Both go on the same LBTT return and are paid to Revenue Scotland together.
ADS on a £300,000 property is £24,000 (8% of £300,000). Standard LBTT adds £4,600, so the total tax is £28,600, or 9.5% of the price.
Yes. Revenue Scotland counts residential property you own anywhere in the world, so a flat in Spain or a house in England counts in the same way as a home in Scotland, provided it is worth £40,000 or more (or your share is, for purchases from 1 April 2024).
No. If you have never owned a home anywhere in the world and you are buying a home to live in, ADS does not apply. You also get first-time buyer relief, which raises the 0% LBTT band from £145,000 to £175,000 and saves up to £600. If you buy a buy to let as your first property, ADS still does not apply, but you cannot claim the first-time buyer relief.
The rate rose from 6% to 8% for purchases with an effective date on or after 5 December 2024. If you entered into the contract on or before 4 December 2024, the 6% rate still applies, even if the purchase completed later.
Usually, yes. Where there are joint buyers, ADS applies if any one of them owns another home worth £40,000 or more and the purchase is not replacing your main residence. Married couples, civil partners and cohabiting partners are treated as one unit, so a home owned by your partner counts even if they are not named on the new title.
No. Companies and most other non-individual buyers pay ADS on every residential purchase of £40,000 or more, including their very first one. The main exception is a single purchase of six or more dwellings, which gets full relief from ADS.
The ADS calculator uses the current 2026–27 residential LBTT bands and the 8% ADS rate published by Revenue Scotland, and it shows the band by band workings so you can check them. It is an estimate for guidance, not tax advice. Your solicitor completes the actual LBTT return, and complex cases, such as trusts, mixed-use property or several dwellings, should be checked with them.
Related guides
Sources: Revenue Scotland, The Additional Dwelling Supplement (ADS) and ADS exemptions and reliefs; GOV.UK SDLT residential rates; Welsh Government LTT rates and bands. This page is general guidance, not tax or legal advice.
