For purchases by individuals, the ADS applies where the subject-matter of a transaction consists of or includes the acquisition of ownership of a dwelling in Scotland and a) at the end of the day that is the effective date of the transaction, the buyer owns more than one dwelling and b) the buyer is not replacing their only or main residence.

Further details relating to transactions by individuals can be found in part LBTT10016 of the guidance.

ADS rates for transactions on or after 25 January 2019

ADS is 4% of the ‘relevant consideration’ (usually the purchase price).

ADS rates for transactions prior to 25 January 2019

ADS is 3% of the ‘relevant consideration’ (usually the purchase price).

Transitional Provision 

Please note that where the effective date of a land transaction is on or after 25 January 2019 and the contract for the land transaction was entered into prior to 12 December 2018, the tax rate of 3% for ADS that was in force prior to 25 January 2019 will apply.

 

For purchases by "non-natural persons", such as companies, the "more than one dwelling rule" does not apply. The ADS applies to every purchase of a dwelling by a non-natural person (other than certain trust transactions as detailed in part LBTT10063 of the guidance) where the subject matter of the transaction consists of or includes the acquisition of a dwelling in Scotland. The LBTT(A)(S)A 2016 adds an additional percentage to the LBTT liability for each transaction with a relevant consideration of £40,000 or more by a non-natural person where the subject-matter of that transaction consists of or includes the acquisition of ownership of a dwelling in Scotland regardless of how many properties are owned at the end of the effective date.

Note: A non-natural person is not regarded as replacing their only or main residence under the LBTT(A)(S)A 2016.

The ADS also applies to all purchases by an individual, acting either as a sole trader or in a partnership of which that individual is a partner, in the course of a business the sole or main activity of which is investing or dealing in property.

Further details relating to transactions by non-individuals can be found in part LBTT10017 of the guidance.

Note: the ADS will not apply where a buyer is an individual who purchases, for example, a first buy-to-let dwelling and that individual:

a) does not own any other existing dwellings at the end of the effective date of the transaction and

b) is not acting either as a sole trader or in a partnership of which that individual is a partner, in the course of a business the sole or main activity of which is investing or dealing in property.

Further details on the effective date of a transaction can be found in parts LBTT10019 and LBTT1004 of the guidance.

LBTT(A)(S)A 2016 schedule 2A paragraphs 2,3 and 9

Archive Date: 
12 December 2018
Last updated: 
12 December 2018

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