Example 71: Reclaiming ADS paid after all joint buyers sell main residences

Example 71: Reclaiming ADS paid after all joint buyers sell main residences

 

Example:

Jim and William are purchasing a dwelling jointly which is intended to be their main residence. Jim already owns a dwelling, which was previously used as a main residence, which he will not have sold at the time of purchase.

Upon purchase, as Jim will own two dwellings and has not replaced his main residence, the ADS will apply. However, Jim then sells his previous main residence 13 months later. At this point, Jim and William will be eligible to claim a repayment of the ADS they paid.

It will not be possible for Jim and William to amend the original LBTT Return made for their next main residence transaction because the 12 month amendment period will have ended. Jim and William or their solicitor can, however, write to Revenue Scotland to make a claim for the repayment of the ADS paid. Any claim would, however, require to be made within 5 years of the filing date of their original LBTT Return.

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