Additional Dwelling Supplement 2019 Increase to 4% in Scottish Budget

Additional Dwelling Supplement 2019 Increase to 4% in Scottish Budget

The Scottish government announced in its budget on 12 December 2018 that it plans to increase the current 3% rate of Additional Dwelling Supplement (ADS) to 4% from 25 January 2019. If approved by the Scottish Parliament, the increase will apply to contracts entered into on or after 12 December 2018.

ADS was introduced in 2016 for people buying an additional residential property over and above their main home. This tax will be increased to 4% of the total purchase price of an additional residential property purchase of £40,000 or more. Information about how ADS applies to your property purchase can be found here.

ADS is part of the Scottish government’s stated drive to help first-time buyers onto the housing market. However, MOV8 Real Estate’s Managing Director, Robert Carroll, states:

“I remain of the view that the tax is counterproductive and does not achieve the laudable aims of helping people to get onto, and climb, the property ladder. The tax does not seem to target the right people and is likely to cause structural problems in the housing market in Scotland because of the way that it restricts people’s ability to move home.”

For more information about why we believe ADS is counterproductive to the housing market in Scotland, see our Guide to LBTT Additional Dwelling Supplement (ADS).

If you have any questions about ADS or how it might apply to the circumstances of your purchase, please don’t hesitate to get in touch with our Conveyancing Team by calling 0131 297 7999 or by emailing [email protected] and we will be happy to help.

I'm Robert Carroll, Managing Director of MOV8 Real Estate, Estate Agents and Solicitors. MOV8 is an innovative and forward-thinking, all-in-one estate agency and solicitor firm with its Head Office in Edinburgh and a City Centre office in Glasgow. We buy and sell literally thousands of properties for property buyers and sellers in Scotland every year, so I see first-hand every day what is actually happening in the property market. This blog aims to give an honest, fresh and sometimes light-hearted take on what is happening in the Scottish property market.


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The Prime Minister at 8.30pm on Monday, 23 March 2020 announced unprecedented measures restricting movement of the UK population in order to combat the spread of the Coronavirus Covid-19 pandemic.

We are experiencing a huge surge of calls and email requests following this announcement, at a time when our capacity is more restricted than normal by sickness absence. Our capacity to answer calls will be restricted and more calls than normal will end in voicemail. Those voicemails will then be emailed to our central, team email accounts and allocated appropriately to the relevant staff members.

Viewing Requests

Anyone hoping to view a property will be unable to arrange a viewing in the coming three weeks. Reassuring our clients through this particularly difficult time has to be our top priority.

We will have to take the unprecedented step of not responding to viewing requests in the meantime. When restrictions are lifted on movement we would ask that, if you remain interested, you submit a fresh request.

Please Remain Patient - We Are in This Together

We respectfully ask that anyone first makes contact with us by email in the coming days.

We are all in this together. We ask that everyone tries to be kind to each other and to our staff throughout what are already the most stressful and anxious of times for everyone, let alone someone who is supposed to be moving home.

Best wishes and be safe,
MOV8 Real Estate