Scottish ADS at 8%: What Buy-to-Let Landlords Pay in 2026/27

Scotland's Additional Dwelling Supplement (ADS) is 8% of the full purchase price for a relevant additional residential property costing £40,000 or more. The rate increased from 6% to 8% on 5 December 2024. It applies on top of the LBTT charge and significantly increases the upfront cost of a buy-to-let acquisition.

What is the ADS and who pays it?

The ADS applies when an individual (or a company in most cases) buys a residential property in Scotland while already owning another dwelling anywhere in the world. It applies even if the existing property is outside Scotland. The key test is ownership of an additional dwelling at the effective date of purchase.

How is the ADS calculated?

The ADS is 8% of the total consideration — the entire purchase price, not just the portion above £40,000. On a £200,000 buy-to-let purchase the ADS alone is £16,000, and on top of the LBTT of £1,100 the total land transaction tax is £17,100. This compares with £1,100 for a main residence purchase at the same price.

• Purchase price £150,000: ADS = £12,000, LBTT = £100, total = £12,100.

• Purchase price £200,000: ADS = £16,000, LBTT = £1,100, total = £17,100.

• Purchase price £300,000: ADS = £24,000, LBTT = £4,600, total = £28,600.

ADS relief for main residence replacement

For transactions from 1 April 2024, a buyer who purchases a new main residence before selling the previous one may be able to reclaim ADS if the former main residence is sold within 36 months and the other repayment conditions are met. Evidence of occupation and disposal is required, and Revenue Scotland applies specific conditions to joint buyers.

ADS and joint purchases

Where two or more buyers purchase together, the ADS applies if any of the buyers own another dwelling. A couple where only one partner owns a property will still trigger the ADS on a joint purchase. Careful planning before exchange is therefore important for couples at different stages of property ownership.

Tax planning for Scottish landlords

The combination of the 8% ADS, Section 24 mortgage interest restriction, and higher Scottish income tax rates means buy-to-let in Scotland requires careful financial modelling before purchase. Whether to hold property personally or in a company structure is an increasingly important consideration.

Countify's non-resident and buy-to-let landlord service covers LBTT, ADS, and ongoing tax planning for Scottish landlords. Use our Scottish stamp duty and LBTT calculator to calculate the exact cost before you purchase.