Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 2A paragraph 3

Conditions for the ADS to apply

Schedule 2A paragraph 3 sets out the conditions that must be met for the Additional Dwelling Supplement (ADS) to apply to a chargeable transaction involving the purchase of a dwelling.

• The ADS applies where the transaction includes the acquisition of ownership of a dwelling, the relevant consideration is £40,000 or more, and the buyer meets certain criteria.
• If the buyer is not an individual (e.g. a company, trust or other entity), the ADS automatically applies provided the consideration and dwelling conditions are met.
• If the buyer is an individual, the ADS applies where the acquisition is made in the course of a business whose sole or main activity is investing or dealing in property interests, including where the individual operates through a partnership.
• The ADS also applies where an individual buys as a trustee under a settlement and there is no beneficiary with a relevant interest in the dwelling being acquired.

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