Buying a second home in Scotland—whether as a buy-to-let investment, holiday property, or pied-à-terre—comes with added tax implications. In Scotland, stamp duty is known as Land and Buildings Transaction Tax (LBTT), and for second homes or additional properties, an Additional Dwelling Supplement (ADS) applies.
If you're considering purchasing a second property in Scotland, understanding how ADS works and how much it could cost is essential for financial planning. In this article, we break down everything you need to know about second home stamp duty in Scotland and how Fraser Bond can help you make an informed property investment.
What Is the Additional Dwelling Supplement (ADS)?
The Additional Dwelling Supplement (ADS) is an extra tax charged on the purchase of second homes or buy-to-let properties in Scotland. It applies on top of the standard LBTT rates and is payable if:
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You already own a property anywhere in the world, and
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You are purchasing an additional residential property in Scotland worth £40,000 or more
The ADS was introduced by Revenue Scotland in 2016 to discourage second home ownership amid rising property prices and housing shortages in key areas.
Current ADS Rate in Scotland (As of 2024)
As of the latest tax year, the ADS rate is:
