The Scottish Government intends to legislate to increase the various timelines in the Additional Dwelling Supplement (ADS) legislation from 18 months to 36 months. The effect of this will be that:
In terms of determining whether a repayment of the ADS can be claimed:
The Scottish Government considers that this increase:
Although it is recognised that the extension to 36 months may still not be sufficient in all situations, the Scottish Government considers that this represents a balanced approach. It takes account of the specifics of the housing market in Scotland and the fact that sales or purchases may be delayed for a range of reasons, whilst also providing certainty about tax revenues.
Please see paragraphs 5 and 7(1)(a) of Annex A [add hyperlink] for the full text of the proposed amendment.
The Scottish Government intends to amend paragraphs 2(2)(a)-(b) and 8(1)(a) of Schedule 2A of the Land and Buildings Transaction Tax (Scotland) Act 2013 (the Act), substituting 36 months for 18 months where relevant.