Residential property

Find out how the Land and Buildings Transaction Tax (LBTT) is applied to residential properties.

Additional Dwelling Supplement (ADS)

Introduced on 1 April 2016, an additional amount of Land and Buildings Transaction Tax (LBTT), known as the Additional Dwelling Supplement (ADS), is due on the purchase of additional dwellings in Scotland, such as buy-to-let properties and second homes.

When you buy a residential property and you already own one or more residential properties you may need to pay ADS. If you're replacing your main residence ADS may not apply.

When non-natural persons (e.g. companies, partnerships) buy residential properties, they'll have to pay the ADS rates.

 

ADS rates

The ADS rate was changed to 4% with effect from 25 January 2019. The contract date and the effective date of your transaction will determine whether the changes affect you.  

ADS rates for transactions on or after 25 January 2019

ADS is 4% of the ‘relevant consideration’ (usually the purchase price).

ADS rates for transactions before 25 January 2019

ADS is 3% of the ‘relevant consideration’ (usually the purchase price).

Transitional Provision

Where the effective date of a land transaction is on or after 25 January 2019 and the contract for the land transaction was entered into before 12 December 2018, the tax rate of 3% for ADS that was in force before 25 January 2019 will apply.

Use the LBTT calculator to work out how much tax you’ll pay.

Calculate tax

Replacing your main residence

You will not pay the extra 4% ADS if the property you’re buying is replacing your main residence and that has already been sold.

If you have not sold your main residence on the day you complete your new purchase you’ll have to pay ADS. This is because you own 2 properties.

You can apply for a refund if you sell your previous main home within 18 months. See how to claim an ADS refund.

For more information on ADS see legislative guidance LBTT10001 - Additional Dwelling Supplement (ADS).