Additional Dwelling Supplement (ADS) is due on the purchase of additional dwellings in Scotland, including second homes and buy-to-let properties. When you buy a residential property and you already own one or more residential properties anywhere in the world in your sole name or in joint names with someone else, you may need to pay ADS.

If when you buy the new property you replace your main residence, and do not own any additional residential property, ADS will not apply.

Additional Dwelling Supplement Rates

The ADS is 4% of the purchase price.

Replacing your Main Residence

You will not need to pay the ADS if the property you are buying is replacing your main residence and it has been sold prior to or on the day of purchasing your new property.

If you have not sold your main residence on the day you complete your new purchase, you will have to pay ADS.

ADS Repayment Claims 

You can apply for a refund of the ADS if you sell your previous main residence within 18 months of completing the purchase.

The criteria to allow a reclaim of payment of ADS are as follows:

  1. The buyer has purchased a property and occupied it as their only or main residence;
  2. The buyer has paid ADS on the purchase of the new main residence; and
  3. Within the period of 18 months, beginning on the day after the purchase transaction has completed, the buyer disposes of or sells their previous main residence.

MHD Law’s Conveyancing team is always available to assist you with queries such as this. If you wish to discuss or obtain advice in relation to the above or the conveyancing process, please get in touch with our Conveyancing Team on 0131 555 0616 or