From the 25th January 2019, the rate at which Additional Dwelling Supplement (ADS) is charged in Scotland will increase from 3% to 4% for those buying a second home, rental property, or residential property that is in addition to their primary residence.
Where the ADS applies, there is a further 4% charge on the full chargeable consideration added to the Land and Buildings Transaction Tax (LBTT) liability for certain transactions with a relevant consideration of £40,000 or more, where the subject-matter of that transaction consists of or includes the acquisition of ownership of a dwelling in Scotland.
The ADS payable for a residential property transaction within the scope of the additional amount of LBTT will therefore be charged on the whole relevant consideration for that transaction.
Our investor clients can calculate ADS along with LBTT using this Tax Calculator.
