About the Bill
The Scottish Government introduced the Land and Buildings Transaction Tax (Relief from Additional Amount) (Scotland) Bill on 13 November 2017. The Bill allows buyers to reclaim Additional Dwelling Supplement (ADS) payments retrospectively where the buyers replaced their main residence prior to selling their current residence, and their current residence was only owned by one of the couple, civil partner or cohabitant.
The Land and Buildings Transaction Tax (Additional Amount-Second Homes Main Residence Relief) (Scotland) Order 2017 was laid to give full effect to the policy intention of the Land and Buildings Transaction Tax (Amendment) (Scotland) Act 2016 to treat married couples, those in a civil partnership and those living as if a married couple as one economic unit for the purposes of ADS.
The ADS is not chargeable if the buyer is replacing the buyer’s only or main residence however, prior to this Order coming into force, it was chargeable if couples were jointly buying a home to replace a home that was only owned by one of them. The Order allowed that in these circumstances, the ADS paid as two dwellings were owned, could now be reclaimed despite only one name being on the title deeds to the former main residence.
This Bill gives retrospective effect, covering the period and transitional arrangements as provided for by the 2016 Act and the 2017 Order, to the 2017 Order, enabling buyers who paid the ADS to reclaim this amount.
Stage 1 Report
The Committee published its Stage 1 Report on 22 February 2018.
The Scottish Government and Revenue Scotland responded to the Stage 1 Report on 5 March 2018.
The closing date for responses was Friday 19 January 2018. We received 5 written submissions and these can be found here
SPICe, Scottish Parliaments Information Centre has published a briefing on the Land and Buildings Transaction Tax (Relief from Additional Amount) (Scotland) Bill
If you need alternative formats of this information or further assistance in making a written submission to the Committee, please contact the clerking team of the Committee via email address above or by telephone on 0131 348 5205.