Scotland's Additional Dwelling Supplement explained
ADS is charged at 8% of the entire purchase price, not on the portion above a threshold. It is added to the LBTT due where the price reaches £40,000 and the purchase leaves you owning more than one dwelling.
Charged on the whole price, not band by band
This is the single most misunderstood rule in UK property taxation, and getting it wrong understates a Scottish second-home bill badly. ADS is not banded and it is not charged only on the amount above a threshold. It is a flat proportion of the entire relevant consideration, applied from the first pound once the purchase is in scope. Structurally it behaves like the old slab system that the rest of the UK abandoned. The LBTT itself is still calculated normally, slice by slice, and the ADS is then added on top as a separate amount. Two calculations, two different mechanics, one bill.
Why Scottish second homes cost so much more
England, Northern Ireland and Wales charge their additional-property surcharge through a banded table, so the lower slices of the price attract lower surcharge rates. Scotland charges its flat rate across everything. At low prices the difference is modest, but because the Scottish charge scales directly with the full price it pulls away from the banded regimes as the price rises. The result is that an identically priced second home, buy-to-let or holiday property is substantially more expensive to buy in Scotland than in England or Wales, and the gap is driven almost entirely by the mechanics rather than by the headline rate.
Replacing your main residence
ADS is aimed at purchases that add a dwelling, not at people moving home. If you are replacing your only or main residence and the previous one is sold at the right time, the supplement does not apply. Where the timing does not line up, for example when the new home is bought before the old one sells, ADS is payable at the point of purchase. A refund can then be claimed if the previous main residence sells within the period Revenue Scotland allows. The claim has its own conditions and time limits, worth confirming before relying on them.
Who ends up paying it
The test is what you own at the end of the day of the transaction, so ADS reaches beyond the obvious holiday-home purchase. Buy-to-let landlords, people buying a property while retaining a former home, parents buying jointly with a child who already owns, and companies buying residential property are all commonly in scope. Ownership held by a spouse, civil partner or cohabitant is generally counted with yours, and property owned anywhere in the world can count. Scotland has no non-resident surcharge, so residence status makes no difference to a Scottish purchase either way.
Key points
- ADS is a flat charge on the entire price, not a banded surcharge on the excess.
- That mechanic makes Scottish second homes markedly dearer than equivalently priced English or Welsh ones.
- Replacing a main residence can exempt the purchase, and a refund route exists if the old home sells in time.
Common questions
Is ADS charged only on the amount above the threshold?
No. Once the price reaches £40,000, ADS is charged at 8% of the entire purchase price, including the portion below the threshold.
Can I get the ADS back if I sell my old home later?
A refund can be claimed from Revenue Scotland if the previous main residence is sold within the period allowed. Confirm the current time limit and conditions with Revenue Scotland.
Does Scotland charge extra to non-UK residents?
No. There is no non-resident surcharge in Scotland. Only England and Northern Ireland apply one.
Work out your own figure
SDLT on a £300,000 property in England & Northern Ireland. That is an effective rate of 1.7%.
Written by StampBand Editorial, published by Inventum. Rates verified 9 August 2026 against HM Revenue & Customs, Revenue Scotland and the Welsh Revenue Authority.