The Scottish government is consulting on proposed changes to how the land and buildings transaction tax (LBTT) additional dwelling supplement (ADS) operates. Key proposals include:
for the purposes of relief from the ADS, extending the maximum period between the sale of the previous main residence and purchase of the new main residence, from 18 to 36 months;
clarifying how inherited properties are considered for the purposes of ADS;
in joint ownership situations making sure that, where an individual share of the property is worth less than £40,000 it is not taken into account for ADS (currently, where the value of the whole property is £40,000 or more, it will count as an additional dwelling for all of the joint owners);
providing relief from ADS on the purchase of a new main residence where the previous main residence is required to be retained by court order, e.g. in cases of divorce;
in joint purchases of a new main residence, making sure that relief applies where only one of the joint purchasers has a previous main residence that is sold within the 18-month period (or prospective 36-month period, following the outcome of the consultation); and
providing relief from LBTT and ADS for local authorities when they buy affordable housing stock.
The Scottish government is consulting on proposed changes to how the land and buildings transaction tax (LBTT) additional dwelling supplement (ADS) operates. Key proposals include:
for the purposes of relief from the ADS, extending the maximum period between the sale of the previous main residence and purchase of the new main residence, from 18 to 36 months;
clarifying how inherited properties are considered for the purposes of ADS;
in joint ownership situations making sure that, where an individual share of the property is worth less than £40,000 it is not taken into account for ADS (currently, where the value of the whole property is £40,000 or more, it will count as an additional dwelling for all of the joint owners);
providing relief from ADS on the purchase of a new main residence where the previous main residence is required to be retained by court order, e.g. in cases of divorce;
in joint purchases of a new main residence, making sure that relief applies where only one of the joint purchasers has a previous main residence that is sold within the 18-month period (or prospective 36-month period, following the outcome of the consultation); and
providing relief from LBTT and ADS for local authorities when they buy affordable housing stock.
