What does section 26A of the Land and Buildings Transaction Tax (Scotland) Act 2013 do?

Section 26A is a signposting provision that introduces Schedule 2A to the Act. It confirms that an additional amount of LBTT, known as the Additional Dwelling Supplement (ADS), is chargeable on certain qualifying residential property transactions such as purchases of second homes and buy-to-let properties in Scotland.

When does the Additional Dwelling Supplement (ADS) apply to a property purchase in Scotland?

The ADS applies where a buyer purchases a residential property and, at the end of the day on which the transaction is effective, the buyer owns more than one dwelling. The most common scenarios triggering the charge are purchases of second homes and buy-to-let investment properties in Scotland.

Is the Additional Dwelling Supplement charged instead of or in addition to standard LBTT?

The ADS is charged in addition to, and on top of, the standard LBTT rates applicable to the transaction. It is not a replacement for the standard charge. The detailed conditions, exemptions, reliefs, and calculation methods are all set out in Schedule 2A to the Act.

When was the Additional Dwelling Supplement introduced and from what date does it have effect?

Section 26A was inserted into the 2013 Act by the Land and Buildings Transaction Tax (Amendment) (Scotland) Act 2016. It has effect for transactions with an effective date on or after 1 April 2016, meaning any qualifying residential property purchase from that date may attract the additional charge.

Land and Buildings Transaction Tax (Scotland) Act 2013 section 26A

Additional amount: transactions relating to second homes etc.

Section 26A introduces Schedule 2A, which provides for an additional amount of LBTT to be charged on certain transactions, notably those involving the purchase of additional residential properties such as second homes and buy-to-let properties.

An additional amount of LBTT applies to certain qualifying transactions involving residential property.
The additional charge is commonly known as the Additional Dwelling Supplement (ADS) and targets purchases of second homes and buy-to-let properties.
The detailed rules governing when the additional amount applies, and how it is calculated, are set out in Schedule 2A to the Act.
This provision was introduced by the Land and Buildings Transaction Tax (Amendment) (Scotland) Act 2016.

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