Additional Dwelling Supplement (ADS) calculator
ADS is 8% of the whole price of a second home or buy-to-let in Scotland costing £40,000 or more. On a £235,000 purchase, that is £18,800 on top of LBTT.
ADS is 8% of the whole price. With standard LBTT of £1,100.00, you pay £17,100.00 in total.
How much is ADS in Scotland?
ADS is a flat 8% of the price of the dwelling. It is charged on the whole amount, not in slices like LBTT. You pay it on top of the standard LBTT.
| Price | LBTT | ADS at 8% | Total |
|---|---|---|---|
| £40,000 | £0 | £3,200 | £3,200 |
| £150,000 | £100 | £12,000 | £12,100 |
| £200,000 | £1,100 | £16,000 | £17,100 |
| £235,000 | £1,800 | £18,800 | £20,600 |
| £325,000 | £5,850 | £26,000 | £31,850 |
| £500,000 | £23,350 | £40,000 | £63,350 |
The 8% rate stayed the same in the Scottish Budget 2026/27.
When ADS applies
As an individual buyer, you pay ADS when all of these are true:
- you are buying a residential property in Scotland for £40,000 or more
- at the end of the purchase day, you own another dwelling anywhere in the world
- you are not replacing your only or main home
The usual cases are a second home, a holiday home or a buy-to-let flat. A home overseas counts as another dwelling.
Companies and other non-individuals pay ADS on most residential purchases. This applies even if they own no other property.
ADS rate history
| In force from | ADS rate |
|---|---|
| 1 April 2016 | 3% |
| 25 January 2019 | 4% |
| 16 December 2022 | 6% |
| 5 December 2024 | 8% |
The 6% rate still applies if you entered into the contract on or before 4 December 2024. This holds even if the purchase completed on or after 5 December 2024. The 8% rate applies when the contract and the effective date are both on or after 5 December 2024.
On a £235,000 purchase under an older contract, ADS at 6% is £14,100 instead of £18,800.
The £40,000 rule
There are two £40,000 tests.
- No ADS is due if the dwelling you are buying costs under £40,000.
- A dwelling you already own that is worth under £40,000 does not count.
So a £40,000 purchase pays ADS of £3,200. A £39,999 purchase pays none.
From 1 April 2024, a share in a jointly owned home is tested on its own. It counts only if your share is worth £40,000 or more. Before that date, the value of the whole property was used.
Replacing your main home
ADS is not due when the purchase replaces your only or main home. The timing decides whether you avoid it at the start or claim it back later.
You sold your old home first
No ADS is due if you sold your previous main home in the 36 months before the new purchase. This applies to purchases from 1 April 2024. Before that, the window was 18 months.
You bought before selling
You pay ADS when you buy. You can claim it back if you sell your previous main home within 36 months of the new purchase. For purchases up to and including 31 March 2024, the limit was 18 months.
Revenue Scotland cannot consider exceptional circumstances. A sale outside the 36 months does not qualify for a repayment.
How to claim ADS back
- Pay the ADS with the LBTT on your new home.
- Live in the new home as your only or main residence.
- Sell your previous main home within 36 months of the new purchase.
- Claim the repayment from Revenue Scotland.
The repayment comes with interest. The rate is the higher of 0.5% a year and the Bank of England base rate.
Example: buying before you sell
A buyer moves from a flat to a house costing £325,000. The flat has not sold when the house purchase completes. They pay LBTT of £5,850 plus ADS of £26,000, a total of £31,850.
The flat sells 10 months later. That is inside the 36 months, so they can claim back the £26,000 with interest. Their final tax is the £5,850 LBTT.
Joint buyers and couples
If any one joint buyer meets the ADS conditions, ADS applies to the whole purchase. This is so even if the other buyer owns nothing.
Spouses, civil partners and cohabitants count as one economic unit. A home owned by either person counts for both. The exception is a couple who have separated and do not intend to live together.
From 1 April 2024, only one of a couple must meet the replacement sale and previous home conditions. Both must live in the new home as their only or main residence.
Example: one buyer owns a flat
Two people buy a £200,000 house together. One owns a rented-out flat and the other owns nothing. Neither is replacing a main home they have sold.
ADS applies to the whole £200,000, not just half. The bill is LBTT of £1,100 plus ADS of £16,000, a total of £17,100.
ADS and first-time buyer relief
ADS and first-time buyer relief cannot both apply. If ADS is due on a purchase, the relief is lost.
LBTT on a second home: worked example
A buyer who already owns a main home buys a second home for £325,000.
| Item | Working | Amount |
|---|---|---|
| LBTT on the first £145,000 | 0% | £0 |
| LBTT on the next £105,000 | 2% | £2,100 |
| LBTT on the next £75,000 | 5% | £3,750 |
| ADS on £325,000 | 8% | £26,000 |
| Total | £31,850 |
The total is 9.8% of the price. Without ADS, the bill would be £5,850.
Using the ADS calculator
Enter the price of the property you are buying. Choose when you signed the contract. Then say if the purchase replaces your main home, and if you have sold your old one yet.
The result shows ADS, LBTT and the total. If your old main home is not yet sold, it shows the ADS you could claim back.
Quick answers
- What is the ADS rate in Scotland?
ADS is 8% of the whole price for contracts and purchases from 5 December 2024. Contracts made on or before 4 December 2024 still pay 6%.
- How much ADS is due on a £200,000 second home?
ADS on £200,000 is £16,000. With LBTT of £1,100, the total is £17,100.
- Do I pay ADS if I have not sold my old home yet?
Yes, you pay it when you buy. You can claim it back if you sell your previous main home within 36 months of the new purchase.
- Does a property abroad count for ADS?
Yes. A dwelling you own anywhere in the world counts, if it is worth £40,000 or more.
- Is ADS due on a property under £40,000?
No. ADS only applies when the dwelling you buy costs £40,000 or more.
- Can I get ADS back if my sale takes longer than 36 months?
No. Revenue Scotland cannot consider exceptional circumstances, so the 36-month limit is fixed.
- My partner owns a flat. Do we pay ADS on a new home?
Spouses, civil partners and cohabitants count as one unit, so the flat counts for both of you. ADS applies unless the purchase replaces your only or main home.
- Do companies pay ADS in Scotland?
Yes, on most residential purchases of £40,000 or more. This applies even when the company owns no other property.