The Additional Dwelling Supplement (ADS) is an extra tax that applies when you buy a home in Scotland and will own more than one residential property at the end of the day of purchase. Since 5 December 2024 it has been 8% of the whole purchase price, on top of any Land and Buildings Transaction Tax (LBTT). On a typical second home or buy-to-let, ADS is often the largest single cost after the deposit, so it is worth understanding before you make an offer.
This guide explains when ADS applies, when it does not, how the 36-month replacement rule works for people moving home, and how to reclaim it if you sell your old home after buying the new one.
What is the Additional Dwelling Supplement?
ADS is part of LBTT, the tax on buying land and property in Scotland, and is collected by Revenue Scotland. It was introduced on 1 April 2016 and is aimed at purchases of second homes, holiday homes and buy-to-let properties. It is charged on the whole price of the property you are buying, not in bands like standard LBTT.
Your solicitor works out the ADS, includes it in the LBTT return and pays it to Revenue Scotland on your behalf when the purchase settles.
How much is ADS in Scotland?
The rate depends on the date of the transaction:
| Transaction date | ADS rate |
|---|---|
| On or after 5 December 2024 | 8% of the price |
| 16 December 2022 to 4 December 2024 | 6% of the price |
| 25 January 2019 to 15 December 2022 | 4% of the price |
| 1 April 2016 to 24 January 2019 | 3% of the price |
Contracts entered into on or before 4 December 2024 keep the 6% rate, even if the purchase settles after that date. The Scottish Budget for 2026 to 2027 made no change to the ADS rate.
When does ADS apply?
If you are buying as an individual, ADS usually applies when all of the following are true:
- the property you are buying is a dwelling costing £40,000 or more
- at the end of the day of purchase you will own two or more dwellings anywhere in the world
- you are not replacing your only or main home (see the 36-month rule below)
Typical examples are buying a buy-to-let flat, a holiday home, or a flat for a student son or daughter while you keep your own home. If you are married, in a civil partnership or living together as if married, properties owned by either of you count, even if only one of you is named on the purchase.
Companies and most other non-individual buyers pay ADS on almost every residential purchase of £40,000 or more, even if they own no other property.
When does ADS not apply?
- You will only own one dwelling at the end of the day of purchase, for example a first-time buyer, or someone who sold their previous home before buying.
- The price is under £40,000.
- The other property you own is worth under £40,000, or, for jointly owned property bought from 1 April 2024, your share of it is worth under £40,000.
- You are replacing your main home and sold your previous main home within the 36 months before the purchase.
The 36-month rule for moving home
For purchases with an effective date on or after 1 April 2024, the replacement period is 36 months (it was 18 months before that). It works in two directions.
You sold your old home first
If you sold your previous main home in the 36 months before buying your new main home, and you lived in it as your main home during that time, ADS does not apply to the new purchase, even if you own other property such as a buy-to-let.
You buy before you sell
If you buy your new main home before your old one has sold, you will normally have to pay ADS when the purchase settles. You can then claim it back from Revenue Scotland if you sell your old main home within 36 months of buying the new one.
How to reclaim ADS
To claim a repayment, these conditions must be met:
- you sell your previous property within 36 months of buying the new one
- the property you sold was your only or main home at some point in the 36 months before you bought the new one
- you have lived in the new property as your only or main home
Where two people buy together with an effective date on or after 1 April 2024, only one of the buyers needs to meet the first two conditions, but both must meet the third. The claim is made to Revenue Scotland, either by you or by your solicitor as your agent, and repayments include interest. Revenue Scotland cannot take exceptional circumstances into account, and there are time limits for claims, so it is best to claim promptly once your sale has settled.
Worked examples
These use the residential LBTT rates for 2026 to 2027 and the 8% ADS rate.
| Purchase | Standard LBTT | ADS at 8% | Total tax |
|---|---|---|---|
| £120,000 buy-to-let flat | £0 | £9,600 | £9,600 |
| £180,000 holiday home | £700 | £14,400 | £15,100 |
| £250,000 second home | £2,100 | £20,000 | £22,100 |
For your own figures, our conveyancing quote calculator works out LBTT and ADS alongside our fixed legal fee and the Registers of Scotland dues.
First-time buyers and ADS
A first-time buyer buying their only home does not pay ADS, and may also benefit from first-time buyer relief, which raises the zero rate band for LBTT to £175,000. Our guide to whether first-time buyers pay LBTT in Scotland explains how that relief works. If you are buying with someone who already owns a home, ADS may apply to the joint purchase, so take advice before you offer.
Getting advice before you buy
The ADS rules have several exceptions for couples, separating spouses, inherited property and joint ownership, and the answer can change the cost of a purchase by thousands of pounds. Tell your solicitor about every property you and your spouse or partner own, anywhere in the world, as early as possible. Our purchase conveyancing service includes checking whether ADS applies and completing the LBTT return for you. Revenue Scotland also publishes full ADS guidance.
Kirsty Docherty, Head of Residential Conveyancing
Kirsty leads our residential conveyancing team and has over a decade of experience in residential property law in Scotland. Last updated 2 November 2026. This guide is general information about Scots law, not legal advice for your situation.
