In order to support Scotland's vital public services, amongst many changes announced in the Scottish Budget yesterday, it was revealed that the rate of the Additional Dwelling Supplement (ADS) element of Land and Buildings Transaction Tax (LBTT) is to increase from 4% to 6% as of today, 16th December 2022.
ADS is a supplementary amount over and above LBTT which is payable when you purchase a second residence in Scotland, e.g. a second home or a buy-to-let property, and forms part of the Scottish Government’s drive to protect opportunities for first time buyers in Scotland.
The revised rate will apply to transactions settling on or after today 16 December 2022, unless the contract was entered into (missives were concluded) on or before 15 December 2022. If a contract was entered into (missives were concluded) on or before 15 December 2022, the previous rate of 4% will apply.