Second Home and Buy-to-Let LBTT in Scotland
The Additional Dwelling Supplement is charged on the whole purchase price rather than band by band, which makes Scottish additional-property purchases markedly more expensive than English or Welsh equivalents.
Scotland charges an Additional Dwelling Supplement on top of Land and Buildings Transaction Tax where a purchase leaves the buyer owning more than one dwelling and the price is £40,000 or more. Unlike the surcharges in England and Wales, it is not a set of extra percentage points added to each band. It is a single charge of 8% applied to the entire purchase price, and it is then added to the LBTT already due on the same transaction. That one design choice, and not a higher rate table, is why Scottish second-home figures come out so far above English and Welsh figures on an identical property.
Charged on the whole price, not on a slice
This is the single most misunderstood rule in UK property tax, and the one calculators most often get wrong. The Additional Dwelling Supplement is not banded and it is not restricted to the amount above the threshold. Once the price reaches £40,000, the supplement is 8% of the full purchase price from the first pound. Because it scales with the whole price rather than with a top slice, it grows in a straight line as prices rise and does not flatten out the way a banded surcharge does.
Why Scottish figures look so much higher
On the same property at the same price, an additional-dwelling purchase in Scotland can cost substantially more than in England or Wales, and the gap widens as the price rises. The LBTT itself is not the cause. The supplement is. A banded surcharge only charges its extra points on the portion of the price that falls in each band, whereas the Scottish supplement charges its rate against every pound of the price. Comparing the two at a fixed price is the clearest way to see the difference.
Who is caught, and the refund route
Second homes, holiday homes and buy-to-let purchases are caught, as are most company and trust purchases and purchases made jointly with someone who already owns a dwelling. A buyer replacing their only or main residence is outside the supplement, provided the sale and purchase line up. Where the new home is bought first, the supplement is paid and then reclaimed once the previous main residence sells, if that happens inside the window Revenue Scotland allows. The claim is made to Revenue Scotland.
What the surcharge costs in Scotland
| Price | Home mover | Additional property | Extra | Effective rate |
|---|---|---|---|---|
| £150,000 | £100 | £12,100 | £12,000 | 8.1% |
| £200,000 | £1,100 | £17,100 | £16,000 | 8.6% |
| £250,000 | £2,100 | £22,100 | £20,000 | 8.8% |
| £300,000 | £4,600 | £28,600 | £24,000 | 9.5% |
| £400,000 | £13,350 | £45,350 | £32,000 | 11.3% |
| £500,000 | £23,350 | £63,350 | £40,000 | 12.7% |
| £750,000 | £48,350 | £108,350 | £60,000 | 14.4% |
| £1,000,000 | £78,350 | £158,350 | £80,000 | 15.8% |
The same second home across the UK
| Nation | Tax | Payable |
|---|---|---|
| England & Northern Ireland | SDLT | £30,000 |
| Scotland | LBTT | £45,350 |
| Wales | LTT | £29,950 |
Check your own price
LBTT on a £400,000 property in Scotland as an additional property. That is an effective rate of 11.3%.
Made up of £13,350 of LBTT plus £32,000 of Additional Dwelling Supplement, which Scotland charges on the whole purchase price rather than band by band.
Common questions
Is the Additional Dwelling Supplement charged only on the amount above the threshold?
No. Once the price reaches £40,000, the supplement is charged at 8% of the entire purchase price, from the first pound. It is not banded and it is not marginal, which is the point most calculators get wrong.
Why is my Scottish second-home figure so much higher than the English one?
Because the Scottish supplement applies its rate to the whole price while England adds percentage points band by band. The LBTT component is not what drives the gap. The supplement is, and the gap widens as the price rises.
Can the supplement be reclaimed?
Where the purchase replaced your only or main residence and the previous home sells within the window Revenue Scotland allows, the supplement can be reclaimed. The claim goes to Revenue Scotland and is subject to a time limit, so the sale date matters.
Source: Revenue Scotland. Rates effective from 1 April 2021, verified 9 August 2026. Figures are computed from the published rate tables and checked against Revenue Scotland’s own calculator.