Example:

Dominique is purchasing a flat as her next main residence and selling her existing main residence. Both transactions are due to complete on the same day. A week before the sale of her existing main residence completes, the buyer loses his job and pulls out of the transaction to buy Dominique's existing main residence. Dominique does not want to delay the completion of her next main residence purchase transaction and this duly completes on the expected day. This next main residence purchase transaction comprises a notifiable transaction.

At the end of the day that is the effective date of the transaction, Dominique owns more than one dwelling and has not replaced her main residence. The ADS will therefore apply. As the sale of her existing main residence has irrevocably broken down, and as Dominique's next main residence purchase transaction comprises a notifiable transaction, Dominique's solicitor makes an LBTT return and pays the LBTT due. An application to register the Disposition in Dominique's favour is then sent to the Keeper for registration.

Six months later, Dominique sells her previous main residence. As she is disposing of a previous main residence within a period of 18 months beginning with the day after the day that is the effective date of her next main residence purchase transaction, Dominique is eligible for a repayment of the ADS paid. Dominique or her solicitor can then claim repayment of the ADS. Further 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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