Budget Proposals to the ADS Rate
18 December 2018
In the Budget proposals on Wednesday this week the Scottish Government included a provision that raises the ADS rate from 3% of the price of a second home, to 4%.
Subject to ratification by the Scottish Parliament, the rise will apply to all relevant transactions settling on or after 25th. January 2019 except where missives were concluded before 12th December 2018. The 3% rate will still apply to those transactions.
Apart from the rate rise there are no proposed changes to LBTT thresholds or reliefs so far as relevant to residential property.
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 (£2100 (Standard LBTT) + £7500 (ADS)= £9600.00) to (£2100 (Standard LBTT) + £10000 (ADS) = £12100.00).