The Scottish Budget delivered a blow for landlords and holiday home buyers, introducing a 1% increase on the tax payable when buying a second property.
The Additional Dwelling Supplement (ADS) was first introduced on 1 April 2016 and is payable when you’re buying a second residential property (in addition to your main home). It means that people buying second homes or buy-to-let property pay an additional 3% on top of the regular LBTT rates.
But in the Scottish Government's Budget speech, the Scottish government proposed raising the LBTT surcharge from 3% to 4%.
The change means that a buy-to-let landlord purchasing a home for £250,000 will see their bill rise from £9,600 to £12,100.
This will of course in turn put further upward pressure on Private Rented Sector (PRS) rent levels in Scotland.
Find out more here.