Scotland's Additional Dwelling Supplement (ADS) generated £230 million from landlords, investors, and second homeowners in the latest 12-month period. This data, from DJ Alexander, Scotland’s largest lettings and estate agency, indicates that total Land and Buildings Transaction Tax (LBTT) receipts reached a record £758.1 million between July 2025 and June.
However, revenue increased by only a few million pounds in recent months, leading the firm to suggest that the tax take may have peaked. ADS receipts were £51.6 million higher than the previous year, with the firm noting a 300% increase over the past decade.
David Alexander, managing director of DJ Alexander, stated that the rate of revenue increases is stalling. He suggested this could be due to market conditions or individuals and investors becoming less willing to pay high property taxation levels. He also noted that people in larger homes may be delaying moves due to prohibitive transaction costs, which can impact the entire housing market.
The proportion of buyers in Scotland paying no LBTT has fallen significantly, from 52.4% in 2015 to 29.9% by June. This means 70.1% of buyers now pay the tax when purchasing a home. Transactions above £325,001 accounted for £441.1 million of the £528.1 million raised from residential LBTT, excluding ADS receipts, with an average tax of £20,820 for these transactions.