Additional Dwelling Supplement (ADS) Calculator 2026: Scotland's 8% Surcharge
Calculate the 8% Additional Dwelling Supplement on your second home or buy-to-let purchase in Scotland, on top of standard LBTT. Includes the 36-month refund window check for buyers replacing their main residence.
Buying any Scottish property? Use the full Scotland LBTT calculator (handles first-time-buyer relief and home-mover scenarios too).
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Your Results
LBTT to Pay
£28,600
Effective tax rate: 9.53%
Tax Breakdown
| Band | Rate | Tax |
|---|---|---|
| £0 - £145,000 | 8% | £11,600 |
| £145,001 - £250,000 | 10% | £10,500 |
| £250,001 - £300,000 | 13% | £6,500 |
| Total | £28,600 | |
| Includes 8% ADS | £24,000 | |
£0 - £145,000
8%
£11,600
£145,001 - £250,000
10%
£10,500
£250,001 - £300,000
13%
£6,500
Total
£28,600
Includes 8% ADS
£24,000
Tax by Band
Added to 25-Year Mortgage
£167/month
Based on 5% interest rate, added to loan amount
What is the Additional Dwelling Supplement?
The Additional Dwelling Supplement (ADS) is Scotland's surcharge on the purchase of additional residential property, second homes, holiday homes and buy-to-let investments. It is charged on top of standard LBTT (Land and Buildings Transaction Tax) under the Land and Buildings Transaction Tax (Scotland) Act 2013, as amended.
ADS sits in the same conceptual family as England's 5% Higher Rates for Additional Dwellings (HRAD) and Wales's higher-rates band structure under LTT, each UK nation taxes additional residential property at a premium over standard rates, but the headline rates and mechanics differ. ADS is administered by Revenue Scotland (not HMRC), filed and paid within 30 days of completion (not the SDLT 14-day window).
The current rate is 8%, from 5 December 2024. It was 6% from 16 December 2022, 4% from 25 January 2019, and 3% when ADS was introduced in 2016. A purchase completing on or after 5 December 2024 under a contract entered into on or before 4 December 2024 keeps the 6% rate (Revenue Scotland).
When ADS applies
ADS is triggered when all three of these conditions are met at the effective date of the new purchase:
- The buyer (or any joint buyer, including spouse/civil partner) already owns another residential property worth £40,000 or more anywhere in the world, including inherited, gifted or trust-held property where a beneficial interest exists.
- The new property being purchased is residential (not commercial or pure land) and costs £40,000 or more.
- The new property is not replacing the buyer's main residence. If the buyer is replacing their main residence and sells the previous home within 36 months, ADS is reclaimable.
The £40,000 threshold catches small interests, even a partial inherited share worth £40,000 or more can trigger ADS on an otherwise straightforward purchase. The worldwide property test catches overseas holdings that buyers often forget to mention to their conveyancer.
ADS rate structure
ADS is a flat 8% on the entire purchase price, not banded like standard LBTT. So the combined effective rate at any price point is standard LBTT + 8%.
| Portion of price | Standard LBTT | + ADS | Combined rate |
|---|---|---|---|
| Up to £145,000 | 0% | 8% | 8% |
| £145,001 – £250,000 | 2% | 8% | 10% |
| £250,001 – £325,000 | 5% | 8% | 13% |
| £325,001 – £750,000 | 10% | 8% | 18% |
| Above £750,000 | 12% | 8% | 20% |
Source: Revenue Scotland LBTT rate tables. See full LBTT rates page.
Worked examples at Scottish price points
Three second-home or buy-to-let purchases at different price points, showing the standard LBTT + ADS combined bill.
| Property price | Standard LBTT | ADS (8%) | Total bill |
|---|---|---|---|
| £190,000 | £900 | £15,200 | £16,100 |
| £300,000 | £4,600 | £24,000 | £28,600 |
| £500,000 | £23,350 | £40,000 | £63,350 |
On the £300k example, ADS multiplies the total tax bill by more than six versus standard LBTT alone, from £4,600 to £28,600. The 8% surcharge is the dominant cost.
Reclaiming ADS: the 36-month refund window
ADS is reclaimable if the new property is replacing the buyer's main residence and the previous main home is sold within 36 months of the new purchase. The Scottish Government extended this window from 18 months to 36 months on 1 April 2024, aligning Scotland with England's replacement-of-main-residence rules.
Refund process at a glance
- You buy a Scottish property and pay LBTT + ADS at completion (within 30 days).
- You sell your previous main home within 36 months of the new purchase.
- You claim the repayment by amending your LBTT return if it is still within the 12-month amendment period, or otherwise by a repayment claim to Revenue Scotland within 5 years of the date the return was due. Claims after the amendment period need proof of the sale.
- Revenue Scotland aims to process repayment claims within 10 days of receiving all the information it needs, and repays the ADS with interest.
Miss the 36-month window and the right to a repayment is lost. Missing the 12-month amendment period is not fatal: you can still claim within 5 years, with proof of the sale. See Revenue Scotland: how to claim an ADS repayment. The England and Northern Ireland rules differ; see the stamp duty refund claim process.
ADS (Scotland) vs HRAD (England) vs Wales higher rates
All three UK property-tax regimes charge a premium on additional residential property, but the headline rate and structure differ:
| Region | Surcharge name | Rate | Structure |
|---|---|---|---|
| Scotland (LBTT) | ADS (Additional Dwelling Supplement) | 8% | Flat % on entire price |
| England & NI (SDLT) | HRAD (Higher Rates for Additional Dwellings) | 5% | Flat % on entire price |
| Wales (LTT) | Higher residential rates | Varies by band (5%-17%) | Separate band structure (not a flat surcharge) |
On the same £300k second home: Scotland total = £28,600 (LBTT + 8% ADS); England total = £20,000 (SDLT £5,000 + 5% HRAD £15,000); Wales total = £19,950 under the higher-rate bands. Scotland is the most expensive of the three at this price, and Wales and England are within £50 of each other. Wales overtakes England once the price passes £402,000, because the Welsh higher-rate bands climb faster than the English standard bands plus 5%. Compare all three regions side-by-side.
Frequently asked questions
What is the Additional Dwelling Supplement (ADS)?
ADS is Scotland's surcharge on additional residential property purchases such as second homes, holiday homes and buy-to-let properties. It is charged at 8% (raised from 6% on 5 December 2024) on the entire purchase price, in addition to standard LBTT. ADS is set by the Scottish Government under the Land and Buildings Transaction Tax (Scotland) Act 2013 and administered by Revenue Scotland.
When does ADS apply?
ADS applies when, at the effective date of the new purchase, the buyer (or any joint buyer) already owns another residential property worth £40,000 or more anywhere in the world, and the new property is not replacing their main residence. If you are replacing your main residence and sell the previous home within 36 months, you can reclaim the ADS.
How is ADS calculated?
ADS is calculated as 8% of the entire purchase price (no thresholds, it applies from £40,000 upwards), added to the standard LBTT bill. On a £300,000 second-home purchase: standard LBTT = £4,600 + ADS at 8% of £300,000 = £24,000. Total = £28,600.
Can I reclaim ADS?
Yes, if the new property replaces your main residence and you sell your previous main home within 36 months of buying the new one (18 months for purchases with an effective date before 1 April 2024). You claim by amending your LBTT return while it is still within the 12-month amendment period, or after that by making a repayment claim to Revenue Scotland within 5 years of the date the return was due.
Is ADS the same as the English higher rates surcharge?
They are equivalents but the rates differ. England/Northern Ireland charge 5% Higher Rates for Additional Dwellings (HRAD) under SDLT. Scotland charges 8% ADS under LBTT. Wales applies higher rates via a separate band structure under LTT (not a flat surcharge). All three regimes share the same 36-month replacement-of-main-residence refund concept.
Does ADS apply to first-time buyers?
ADS only applies if the buyer (or any joint buyer) already owns another residential property anywhere in the world. A genuine first-time buyer with no other property ownership pays neither LBTT (up to £175,000 with FTB relief) nor ADS. However, a first-time buyer in Scotland who already owns a property elsewhere (including abroad) will pay ADS on the Scottish purchase.
When did ADS increase from 6% to 8%?
The Scottish Government raised ADS from 6% to 8% on 5 December 2024. The rate change applied to transactions with an effective date on or after that date, unless the contract was entered into on or before 4 December 2024, in which case the previous 6% rate still applies. Transactions that completed before 5 December 2024 paid 6%.
Reviewed by
Julie White
ACAStamp duty specialist since 1999Stamp Duty Land Tax Specialist
ACA and Tax Adviser with a career spanning nearly four decades, specialising in stamp duty planning and advisory work since 1999.