Reclaiming ADS paid, previous main residence not main residence at time of next main residence purchase


Honey owns the main residence that she lives in. She decides to rent out this dwelling and moves into rented accommodation. She then buys a new dwelling to live in as her next main residence and keeps ownership of her existing dwelling that she is renting out.

At the end of the day that is the effective date of her next main residence purchase transaction, Honey owns two dwellings and she had not replaced a next main residence. The ADS will therefore apply to this transaction.

Nine months later, Honey then sells the dwelling that she has been renting out. As this dwelling had been Honey's main residence at some point in the 18 month period before she bought her next main residence, she will be able to claim repayment of the ADS. 

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