Example:

BM Associates are purchasing 4 flats in a new development in one transaction. At the end of the day that is the effective date for the transaction, the company owns 4 dwellings.

As the ADS applies to every purchase of a dwelling in Scotland by a non-natural person other than certain trust transactions, the ADS will apply to the full purchase price of the transaction.

Two months later, the developer approaches the company and offers them the opportunity to purchase another 4 flats in same development. Again, as the ADS applies to every purchase of a dwelling in Scotland by a non-natural person other than certain trust transactions, the ADS will apply to the full purchase price of the transaction.

BM Associates make a claim for repayment of the ADS for both purchases as they consider that, as they have purchased 8 dwellings from the same developer, the 100% relief available for any transaction in which a buyer purchases six or more residential properties in that one transaction, will apply. However, as BM Associates Limited have purchased the 8 dwellings in two separate transactions, neither of which comprised a transaction of six or more residential properties, relief will not be available for either transaction.

Details on claiming repayment of the ADS can be found in part LBTT10070 of the guidance.

Last updated: 
6 April 2016
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