Additional Dwelling Supplement (ADS) is a supplementary amount over and above Land and Buildings Transaction Tax (LBTT) which is payable when you purchase a second residence in Scotland, e.g. a second home or a buy-to-let property. This ADS tax was only introduced on 1st April 2016, so fairly recently, at rate of 3% payable on the total purchase price of an additional dwelling over £40,000. However, on the 25th January 2019 all property transactions that qualify as an additional property became subject to Additional Dwellings Supplement at the increased rate of 4%. So, ADS is now charged at 4% of the total purchase price of the dwelling. This additional supplement forms part of the Scottish Government's drive to protect opportunities for first time buyers in Scotland. For more information on ADS do give us a call, or you can read more about LBTT here.