Precious owns two properties, a main residence and a holiday home. She decides to move into her holiday home as her next main residence, keeping her old main residence to let out.
3 months later, Precious sells her previous main residence and purchases a smaller dwelling. At the end of the day that is the effective date of the transaction, Precious owns two dwellings, and whether the ADS will apply will depend on whether she is replacing a main residence.
If Precious intends to move into the newly purchased dwelling as her next main residence, the ADS will not apply because she sold her previous main residence within the previous 18 months. If she does not intend to occupy the newly purchased dwelling as her next main residence, the ADS will apply. Further guidance on this issue is provided in part LBTT10020 of the guidance.