Jonathon is a developer who runs a sole trader property investment business, Mercury Revivals, which currently owns two dwellings. Each of the purchase transactions for these two dwellings were subject to the ADS. Jonathon lives in rented accommodation but decides that it is time to stop renting and buy a house to live in.
At the end of the day that is the effective date of the transaction, Jonathon owns three dwellings and has not replaced a main residence. However, as two of the dwellings were bought through the business and were each subject to the ADS, they are not counted as being owned by Jonathon for the purpose of the LBTT(A)(S)A 2016, therefore the ADS will not apply to the transaction.