The Additional Dwelling Supplement in Scotland: a landlord's guide

If you already own a home and buy an additional residential property in Scotland, such as a buy-to-let, you will usually pay the Additional Dwelling Supplement (ADS) on top of Land and Buildings Transaction Tax (LBTT). Revenue Scotland collects both.

The current rate

For transactions on or after 5 December 2024, the ADS is 8% of the purchase price. It was previously 6% (from 16 December 2022). If the contract was entered into on or before 4 December 2024, the 6% rate may still apply.

When it applies

• The ADS does not apply where the price of the property is less than £40,000.
• It applies to most purchases of residential property in Scotland by companies and other non-natural persons, even if they own no other residential property.
• If you are replacing your main residence, you may be able to reclaim the ADS if you sell your previous main residence within 36 months of buying the new one (for transactions on or after 1 April 2024).

What this means for your mortgage

The ADS is paid from your own funds on top of your deposit, so it needs to be part of your plan from the start. Your solicitor handles the LBTT return.

This guide is general information, not tax advice. The rules have exceptions, so check Revenue Scotland's guidance or speak to a tax adviser or your solicitor about your purchase.