Glossary
ADS: Additional Dwelling Supplement
The Scottish surcharge on second homes and buy-to-lets, added to LBTT.
What it means
The Additional Dwelling Supplement is charged in Scotland on top of Land and Buildings Transaction Tax when you buy an additional home for £40,000 or more. It is a flat 8% of the whole price, not a banded rate, so it bites hard on cheaper investment properties that would otherwise pay no LBTT at all.
Worked example
ExampleA £120,000 flat in Scotland bought as a buy-to-let.
- LBTT (nil band up to £145,000)
- £0
- ADS at 8%
- £120,000 × 8% = £9,600
£9,600 in tax on a property that would cost a home-mover nothing.
Information, not advice. Example figures are fictional and for illustration only.