The Additional Dwelling Supplement (ADS) – UPDATE

The Additional Dwelling Supplement (ADS)

This guidance has been updated to take account of legislative changes as of 1 April 2024.

Changes have been made to the Additional Dwelling Supplement (ADS) legislation which affect transactions with an effective date on or after 1 April 2024. For example if you buy a new main residence on or after 1 April 2024 the new rules, including the extended 36 month time limits will apply. The new rules will not apply if you bought your new main residence before 1 April 2024.

What is the Additional Dwelling Supplement (ADS)

The ADS is an additional charge which is added to any Land and Buildings Transaction Tax (LBTT) which may be due. It is charged if you buy an additional residential property (dwelling) in Scotland.

Examples of an additional residential property can include:

• a second home
• a rental property
• a holiday home
• properties used by family and friends even if you don’t charge rent

For further details please see the below link –

https://revenue.scot/taxes/land-buildings-transaction-tax/additional-dwelling-supplement-ads