Repayment of ADS not available following sale of a buyer’s previous main residence


Rebecca owns her current main residence and she will be buying a new main residence with her partner, Owen, who currently lives in separate rented accommodation.

Rebecca cannot sell her previous main residence before her joint purchase of her new main residence with Owen. Therefore at the end of the day that is the effective date of the transaction, Rebecca and Owen own or are deemed to own one or more dwellings, and as they have not replaced their main residence the ADS will apply. 

Rebecca sells her previous main residence three months later and they now wish to claim a repayment of the ADS. However, as both buyers did not occupy that property as their previous main residence, schedule 2A, paragraph 8A of the LBTT(S)A 2013 does not apply and as such repayment of the ADS cannot be claimed.

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