Additional Dwelling Supplement (ADS)
The Additional Dwelling Supplement is an 8% surcharge on top of standard LBTT rates that applies when buying an additional residential property in Scotland worth £40,000 or more. It is Scotland's equivalent of the higher rates surcharge in England.
Last verified: April 2026 | Source: Revenue Scotland
Key Takeaways
- •ADS is currently 8%, charged on top of standard LBTT rates for additional residential purchases in Scotland.
- •Applies to purchases of £40,000 or more where you already own a residential property.
- •The rate was increased from 6% to 8% in December 2024.
- •A refund is available if you sell your previous main home within 18 months of the new purchase.
- •Administered by Revenue Scotland, not HMRC.
In this article
What Is ADS
The Additional Dwelling Supplement (ADS) is a surcharge added on top of standard LBTT rates when buying an additional residential property in Scotland. It was introduced in April 2016 as Scotland's response to the UK Government's higher rates surcharge in England.
ADS is charged on the full purchase price of the additional property, not just the portion above the nil-rate threshold. For example, a £300,000 additional property purchase incurs ADS of £24,000 (8% of £300,000) on top of the standard LBTT liability.
When It Applies
ADS applies when, at the end of the day you complete your purchase in Scotland, you own more than one residential property worth £40,000 or more — including property owned anywhere in the world.
Married couples and civil partners are assessed jointly for ADS purposes. If either spouse would trigger ADS individually, the entire transaction is subject to the surcharge.
Current Rate
The current ADS rate is 8%, applied on the full purchase price of the additional property on top of standard LBTT. This rate has been in place since December 2024.
Worked example: £300,000 additional property in Scotland
- Standard LBTT:
- 0% on first £145,000 = £0
- 2% on next £105,000 (£145,001 to £250,000) = £2,100
- 5% on final £50,000 (£250,001 to £300,000) = £2,500
- Standard LBTT total = £4,600
- ADS (8% of £300,000) = £24,000
- Total LBTT + ADS: £28,600
Rate History
The ADS rate has been increased several times since it was introduced:
| Date | ADS rate |
|---|---|
| April 2016 (introduced) | 3% |
| January 2019 | 4% |
| April 2023 | 6% |
| December 2024 (current) | 8% |
Claiming a Refund
If you paid ADS because you still owned your previous main home at completion, you can claim a refund if you sell that previous home within 18 months of your new purchase.
The refund claim must be submitted to Revenue Scotland within 12 months of the sale of your previous main home (or within 12 months of the filing date of the original LBTT return, if later).
Note: Scotland's ADS refund window (18 months) is shorter than the equivalent refund window for England's higher rates surcharge (36 months). Make sure you track the deadline carefully.
ADS vs England's Higher Rates
| Feature | ADS (Scotland) | Higher rates (England) |
|---|---|---|
| Administered by | Revenue Scotland | HMRC |
| Rate | 8% flat on full price | +5% on each standard band |
| Minimum purchase | £40,000 | £40,000 |
| Refund window | 18 months | 36 months |
| Couples treated as unit | Yes | Yes |
Official Government Source
For official ADS guidance, see Revenue Scotland:
Additional Dwelling Supplement — Revenue ScotlandFrequently Asked Questions
What is the Additional Dwelling Supplement?
The Additional Dwelling Supplement (ADS) is an 8% surcharge on top of standard LBTT rates that applies when buying an additional residential property in Scotland for £40,000 or more. It is Scotland's equivalent of the higher rates surcharge that applies in England.
When did ADS increase to 8%?
The ADS rate increased from 6% to 8% in December 2024. It was previously increased from 3% to 4% in January 2019 and from 4% to 6% in April 2023.
Is there a refund available if I sell my old home?
Yes. If you sell your previous main residence within 18 months of buying your new home in Scotland, you can apply for an ADS refund from Revenue Scotland. The refund window in Scotland (18 months) is shorter than the equivalent window in England (36 months).
In this article
Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Calculate My Stamp Duty UK to help buyers understand the complex world of property transaction taxes.