Additional Dwelling Supplement ("ADS") has
been a feature of Scottish tax law since 1 April 2016, being an
additional amount of Land and Buildings Transaction Tax (LBTT) due
on the purchase of additional dwellings, i.e. second homes and
buy-to-let properties located in Scotland.
Some teething problems arose with the implementation of ADS, and
with effect from 30 June 2017, the Land and Buildings Transaction
Tax (Additional Amount – Second Homes Main Residence Relief)
(Scotland) Order 2017 ("the 2017 Order") amends the ADS
rules on family homes and replacing main residences.
Previously, ADS was payable where spouses/civil
partners/cohabitants jointly bought a house but prior to purchasing
that new house, the spouses/civil partners/cohabitants sold a house
which they lived in together but which was only owned by one of
them. Relief is now given under the 2017 Order and no ADS would be
payable in such a scenario – as the spouses/civil
partners/cohabitants are both
