Where the ADS has been paid and the buyer has been able to dispose of their previous main residence within an 18 month period beginning with the day after the effective date of the next main residence purchase transaction, the buyer (or their solicitor acting on their behalf) may claim a repayment of the ADS paid.

In any scenario where, after the end of the day that is the effective date for the next main residence purchase transaction;

(a) the buyer sells a dwelling which was their main residence at any time during the 18 month period ending with the day that is the effective date of the next main residence purchase transaction, and

(b) the sale of that previous main residence is within a period of 18 months beginning with the day after the day that is the effective date of the next main residence purchase transaction then

a repayment of the ADS may be claimed.

Where a previous main residence is sold after the period of 18 months beginning the day after the day that is the effective date of the next main residence purchase transaction, no repayment may be claimed.

The Land and Buildings Transaction Tax (Additional Amount – Second Homes Main Residence Relief) (Scotland) Order 2017 (SSI Order 2017) amends the ADS rules around family units and replacing main residences including the rules on claiming repayments, in Schedule 2A of the Land and Buildings Transaction Tax (Scotland) Act 2013, by introducing two further paragraphs, 8A and 9A. The amendments will apply to transactions where a) the contract was entered into on or after 20 May 2017 and b) the effective date of the transaction is on or after 30 June 2017. See LBTT 10062A.

Claiming repayment of the ADS

A repayment can be claimed by either:

(a) amending the original LBTT Return for the transaction if within the statutory 12 month amendment period set by section 83(2) of the RSTPA 2014 or,

(b) where the statutory amendment period has ended by making a claim for repayment of an overpayment of tax to us under section 107 of the RSTPA 2014.

The specific procedure for making claims for repayment are detailed in sections 114 to 117 (inclusive) and in schedule 3 of the RSTPA 2014.

Detailed guidance on amending returns and claiming repayments can be found in parts LBTT4006 and RSTP7003 respectively.  You may also wish to read “How to claim a repayment of Additional Dwelling Supplement” which has information specifically about ADS.

LBTT(A)(S)A 2016 schedule 2A paragraph 8

RSTPA 2014 sections 83(2) and 107 and sections 114 to 117 (inclusive) and schedule 3

Example 47A: One spouse owns main residence, joint purchase of new main residence but the transaction does not meet the conditions of the amended Legislation

Example 68: Reclaiming ADS paid, previous main residence sold within 18 months

Example 69: Reclaiming ADS paid, no replacement of a main residence

Example 70: Reclaiming ADS paid after sale falls through

Example 71: Reclaiming ADS paid after all joint buyers sell main residences

Example 72: Reclaiming ADS paid, previous main residence sold after 20 months

Example 73: Reclaiming ADS paid, previous main residence sold within 18 months

Example 74: Reclaiming ADS paid, previous main residence not main residence at time of next main residence purchase