The Scottish Government has launched a call for evidence ‘The Land and Buildings Transaction Tax Additional Dwelling Supplement’ which seeks views on the operation of the Additional Dwelling Supplement (ADS).

At a glance

The Additional Dwelling Supplement (ADS) was introduced for Scottish Land and Buildings Transaction Tax (LBTT) purposes from 1 April 2016.

The ADS generally applies where a buyer, who is not replacing their main residence, purchases a property which results in them owning more than one residential property. The ADS charges an additional 4% of LBTT where the chargeable consideration is £40,000 or more.

Call for evidence

This call for evidence was announced at the 2022-23 Scottish Budget and is the first step in a review of the ADS. It aims to:

  • Build a clear and shared understanding of all the issues of concern with the ADS.
  • Develop a stronger evidence base regarding the case for change.
  • Identify any proposals for legislative amendments which could address the issues of concern.

Responses should be submitted online or via post no later than 11 March 2022.

Useful guides on this topic

Scottish Budget 2022-23: Summary
Scottish Finance Secretary Kate Forbes announced the draft Scottish Budget for 2022-23 on 9 December 2021. 

LBTT: Additional Dwelling Supplement
What is the Additional Dwelling Supplement for the Land and Buildings Transaction Tax? When does it apply? 

LBTT: Land and Buildings Transaction Tax (LBTT)
What is Land and Buildings Transaction Tax (LBTT)? What are the rules?

External link

Land and Buildings Transaction Tax - Additional Dwelling Supplement: call for evidence and views


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