Additional Dwelling Supplement in Scotland
The Additional Dwelling Supplement, usually called ADS, is an extra Scottish property tax charge when an acquisition meets the additional dwelling rules. It is charged on the whole purchase price and added to the standard Land and Buildings Transaction Tax, or LBTT.
What the supplement adds
The current ADS rate is 8%. Standard LBTT uses graduated bands, so different parts of the price can attract different rates. ADS applies its rate to the whole price when the rules require it.
This makes the supplement a separate part of the tax budget. The LBTT calculator shows the standard charge and ADS separately, so you can see how much each contributes to the total. Selecting an additional dwelling calculation estimates the amount; it does not establish whether your purchase is legally subject to ADS.
ADS does not apply where the purchase price is below £40,000. At or above that price, the ownership and main residence rules still determine whether ADS is due. Meeting the price threshold alone does not make a purchase subject to the supplement.
A worked example at £300,000
Suppose a residential purchase in Scotland costs £300,000 and ADS applies. Standard LBTT is £4,600. The supplement adds £24,000, taking the combined tax to £28,600. The supplement is calculated on the full purchase price, including the part of the price that attracts no standard LBTT.
The example assumes the current rates and a purchase subject to ADS. It does not apply an exemption or a later repayment. When working out the cash needed for a purchase, keep the tax separate from the deposit. The house deposit calculator can help with that part of the budget.
Ownership and replacing a main residence
Whether ADS applies depends on the legal rules for the purchase. Existing property ownership matters, along with whether the transaction replaces a main residence. Joint buyers need to check the rules for their combined circumstances. Property ownership outside Scotland can matter too, including for someone who does not live in Scotland.
A second purchase is not enough information to decide the tax treatment. Revenue Scotland's guidance explains exceptions and the conditions for replacing a main residence. Some transactions can qualify for a repayment when the required conditions are met. A repayment is not automatic, and the calculator cannot confirm entitlement. Check the guidance for the conditions and deadlines that apply to your transaction.
Different taxes elsewhere in the UK
ADS is part of Scotland's LBTT system. England and Northern Ireland use Stamp Duty Land Tax; the stamp duty calculator covers that tax. Wales uses Land Transaction Tax, which has its own LTT calculator. The Scottish rate and eligibility rules should not be applied to a purchase in those countries.
For the ongoing cost of a home, the mortgage calculator estimates repayments. The salary needed to buy pages compare published area house prices with local pay. Neither calculation decides whether ADS applies, and property tax remains an additional purchase cost.
Questions
Is ADS charged only above an LBTT band?
No. When ADS applies, its rate is charged on the whole purchase price. The standard LBTT bands are calculated separately.
Does every second purchase attract ADS?
No. The tax treatment depends on ownership and the detailed rules, including those for replacing a main residence. Check the transaction against Revenue Scotland's guidance.
Can I get ADS back after selling another home?
A repayment may be available if the replacement main residence conditions are met. A sale alone does not guarantee a repayment. Revenue Scotland sets out the requirements and how to claim.
Source and assumptions
The figures use current Scottish rates and assume ADS applies to the worked example. This page provides general information, not tax advice. Revenue Scotland's ADS guidance is the source for eligibility, exceptions and repayment rules. Check those rules for your purchase before relying on an estimate.