ADS Repayment claims – new online process for Taxpayers

22 June 2020

Revenue Scotland has introduced new functionality to the Scottish Electronic Tax System (SETS) system that allows Taxpayers to claim repayment of Additional Dwelling Supplement (ADS) now entirely online.

Taxpayers would previously submit a claim for repayment of ADS using a paper form and posting to Revenue Scotland. Enhancements now introduced to the online tax collection system mean Taxpayers can submit claims electronically.

What is ADS?

Additional Dwelling Supplement (ADS) is a Land and Building Transactions Tax (LBTT) supplement introduced in April 2017. It applies to the purchase of additional residential properties in Scotland worth £40,000 or more. The ADS rate is 4% of the total purchase price of the additional property.

Can ADS payments be reclaimed?

Where ADS has been paid and the buyer has been able to dispose of their previous main residence within an 18 month period, the buyer (or their solicitor acting on their behalf) may claim a repayment of the ADS paid.

Under new legislation introduced by the Coronavirus (Scotland) (No.2) Act 2020, there will be an increase of 18 months to the period in which some buyers can dispose of a previous main residence and still be eligible for a repayment of the ADS.  This will result in some buyers having 36 months rather than 18 months to dispose of their previous main residence and still be eligible for a repayment of ADS.

Claiming repayment of ADS

The way in which claims for repayment of ADS are made depends on who is making the claim:

  • Agents claiming on behalf of a Taxpayer should either amend the original LBBT return in SETS or else complete the new online repayment claim form and email back to Revenue Scotland
  • Taxpayers making repayment claims themselves should use the new online process

More information on how to claim repayment of ADS is available on the Revenue Scotland website

If you have any questions or are having difficulty completing the new online repayment claims process, please contact Revenue Scotland by email: lbtt@revenue.scot

Additional Notes

LBTT including ADS, is a self-assessed tax. It is up to the taxpayer to ensure they meet the relevant repayment criteria. Legislative guidance, including the ADS repayment criteria, can be found at LBTT10070.

Revenue Scotland aims to process the repayment claim within 10 working days and will repay the ADS to you with interest -see the separate guidance on interest on repayments provided at RSTP4004.