In the latest Budget update, the Scottish Government included a change to raise the additional dwelling supplement (ADS) rate from 6% of the price of a ‘second home’, to 8%.
This means that the rise will apply to all relevant transactions settling on or after 5 December 2024 except where missives were concluded before close of business on 4 December 2024. The 6% rate will still apply to those transactions.
So, as an example, for a homeowner buying a buy to let or second home in Scotland at £250k, the LBTT bill will rise from (£2,100 (Standard LBTT) + £15,000 (ADS) = £17,100) to (£2100 (Standard LBTT) + £20,000(ADS) = £22,100).
For further information and advice, please contact a member of the residential property team who will be more than happy to help.
