How do I reclaim the Scottish ADS surcharge after selling my previous main home?

Full answer

The Additional Dwelling Supplement (ADS) is a Scotland-only surcharge of 8% on the full purchase price, charged on top of standard Land and Buildings Transaction Tax (LBTT) when you buy an additional residential property costing £40,000 or more. If you buy your new main home before selling your old one, you temporarily own two dwellings, so ADS applies even though you are simply moving house. You can reclaim it once the previous main residence is sold. To qualify, you must dispose of your old main residence within 36 months of the effective date (usually completion) of buying the new one, and both properties must have been your only or main residence at the relevant times. The reclaim is made to Revenue Scotland: if you submitted the original LBTT return, you amend it; otherwise you make a standalone repayment claim. The claim must generally be made within 12 months of the sale of the old home, or within five years of the filing date of the original return, whichever is later, so do not delay. Worked example: you buy a £400,000 main home before selling your old flat. ADS at 8% is £32,000, paid alongside standard LBTT. When you sell the old flat within 36 months, you reclaim the full £32,000 from Revenue Scotland. Note the regional contrast: this 36-month replacement rule and 8% rate apply only in Scotland. In England and Northern Ireland the equivalent is the SDLT higher rate with a 36-month replacement window; in Wales the Land Transaction Tax higher rates apply with their own rules. Always reclaim through Revenue Scotland, not HMRC, and keep evidence of both transaction dates.

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