LBTT supplement relief change to be made retrospective

In June 2017, a change was made to the additional dwelling supplement to allow relief from ADS where spouses, civil partners or cohabitants who jointly buy a main residence are considered to be replacing their main residence when their previous main residence is sold, but was owned by only one of them.

This change was made by statutory instrument: the LBTT (Additional Amount – Second Homes Main Residence Relief) (Scotland) Order 2017 (SSI 2017/233). 

To allow the change to apply retrospectively, the Scottish Government proposes to introduce a bill in the current Parliament that will mean that repayment of the ADS will be able to be claimed by taxpayers who meet the relevant criteria for transactions which happened prior to the effective date for the order.