Land and Buildings Transaction Tax review: Scottish government policy evaluation 2025-2026

Section B: The Impact of the Additional Dwelling Supplement where Exceptional Circumstances Apply

This section sets out an initial examination of how the Additional Dwelling Supplement (ADS) interacts with difficult or exceptional circumstances, drawing on operational experience from Revenue Scotland, comparator arrangements in other UK tax regimes, and detailed discussion with the LBTT Review Working Group.

The section outlines the current legislative framework for ADS, highlights the types of circumstances that can give rise to challenges - including personal, property‑related, transactional and wider societal factors - and summarises the practical, ethical and administrative considerations identified by stakeholders.

As with Section A, the purpose is to set out the issues clearly rather than to propose reforms, providing an evidence base for further consideration in the next parliamentary term.