## Use the Scottish transaction taxes
Revenue Scotland's current residential bands are 0% up to GBP 145,000, 2% from GBP 145,001 to GBP 250,000, 5% from GBP 250,001 to GBP 325,000, 10% from GBP 325,001 to GBP 750,000 and 12% above GBP 750,000.
The [Additional Dwelling Supplement guidance](https://revenue.scot/taxes/land-buildings-transaction-tax/additional-dwelling-supplement-ads) says the ADS rate is 8% for applicable transactions on or after 5 December 2024 where the contract was entered into on or after that date.
Revenue Scotland says ADS is calculated alongside LBTT, included on the LBTT return and paid at the same time.
For a controlled GBP 200,000 additional dwelling, the first GBP 145,000 is in the nil band. The remaining GBP 55,000 at 2% produces GBP 1,100 LBTT. ADS is GBP 200,000 multiplied by 8%, or GBP 16,000. The controlled combined amount is GBP 17,100.
This example does not decide whether ADS applies to a specific buyer; the Revenue Scotland conditions determine that answer.
## Check landlord registration
The current [mygov.scot landlord responsibilities](https://www.mygov.scot/landlord-responsibilities) page says it is the landlord's responsibility to register. Scottish Government guidance says the scheme creates a public register and allows councils to assess whether a landlord is fit and proper.
The guidance also says a person who lets property without being registered or having applied can face a fine of up to GBP 50,000 and suspension of rent payments.
Record the owner, letting property and registration evidence in the property file rather than treating the purchase registration as the landlord registration.
## Apply the Scottish HMO threshold
The current [mygov.scot HMO licence page](https://www.mygov.scot/landlord-hmo-licence) says a licence is needed where a property is rented to three or more tenants and none are related or part of the same family. The application is made through the local council.
It says operating a property that needs an HMO licence without one is a criminal offence and can lead to a fine of up to GBP 50,000.
## Test the operating result separately
Use the [gross and net yield calculator](/tools/gross-net-yield-calculator) with the controlled GBP 200,000 price, GBP 18,000 annual rent, GBP 1,800 management, GBP 900 maintenance, GBP 600 insurance, GBP 900 voids and GBP 600 other annual costs.
Those inputs give GBP 4,800 operating costs and GBP 13,200 net rent before borrowing. Gross yield is 9%; net yield before borrowing is 6.6%. Keep the GBP 17,100 controlled tax result outside annual operating costs.