Land and Buildings Transaction Tax (Scotland) Act 2013 section 9

Exemption from ADS for certain transactions involving six or more dwellings

Section 9 of Schedule 2A provides that the Additional Dwelling Supplement (ADS) does not apply where the buyer purchases six or more dwellings in a single transaction and elects to have them treated as non-residential property.

• A chargeable transaction is exempt from the ADS in specific circumstances involving bulk purchases of dwellings.
• The exemption applies where the transaction falls under section 59(8) of the Act, which covers purchases of six or more residential properties in one transaction.
• Under section 59(8), when a buyer acquires six or more dwellings together, they may elect to have those dwellings treated as non-residential property for LBTT purposes.
• Because the properties are treated as non-residential, the ADS — which only applies to residential property transactions — does not arise.