The additional dwelling supplement (ADS) surcharge on purchases
of second homes in Scotland is repayable to taxpayers where they sell their
previous main residence within 18 months of buying their new home.
Responding to concerns raised around the impact on this
deadline of coronavirus-related delays in house sales, the Scottish government
has put forward a temporary extension.
The Coronavirus (Scotland) (No. 2) Bill, introduced into the
Scottish Parliament on 11 May 2020, will extend the period for refunds. For
transactions between 24 September 2018 and 24 March 2020, the extended period
for a disposal of a previous main residence will be 27 months (rather than 18
months). This means that taxpayers who bought a new home during that period
will have 27 months (starting from the day after the effective date of the
transaction) to sell their old home. As currently drafted, purchases of new
homes after 24 March 2020 will revert back to the original 18-month deadline.
The Bill will, however, give Scottish ministers the power to extend both the 27-month
period and also the qualifying date spans.
The additional dwelling supplement (ADS) surcharge on purchases
of second homes in Scotland is repayable to taxpayers where they sell their
previous main residence within 18 months of buying their new home.
Responding to concerns raised around the impact on this
deadline of coronavirus-related delays in house sales, the Scottish government
has put forward a temporary extension.
The Coronavirus (Scotland) (No. 2) Bill, introduced into the
Scottish Parliament on 11 May 2020, will extend the period for refunds. For
transactions between 24 September 2018 and 24 March 2020, the extended period
for a disposal of a previous main residence will be 27 months (rather than 18
months). This means that taxpayers who bought a new home during that period
will have 27 months (starting from the day after the effective date of the
transaction) to sell their old home. As currently drafted, purchases of new
homes after 24 March 2020 will revert back to the original 18-month deadline.
The Bill will, however, give Scottish ministers the power to extend both the 27-month
period and also the qualifying date spans.
