12/06/2026
First up in our Investor Terms Explained series, The Additional Dwelling Supplement (ADS).
ADS is an extra tax charged when you purchase an additional residential property in Scotland, such as a buy-to-let, second home or holiday property.
As of December 2024, ADS is charged at 8% of the purchase price and is payable alongside your LBTT.
In most cases, you’ll pay ADS if:
✔ You already own a residential property anywhere in the world
✔ You’re buying another residential property in Scotland
✔ You’re not replacing your main residence
For investors, it’s an important cost to factor into your acquisition strategy from the outset.
There are exemptions and potential repayment opportunities available in certain circumstances, particularly when replacing your main residence, so understanding the rules before you buy is essential.
Property investing is all about the numbers. Make sure ADS is one of them.
www.ascensionletting.com