Additional Dwelling Supplement reclaim time has been extended by 18 months
In recognition of the abrupt halt brought to the property market in late March, the Scottish Government has extended the amount of time available to people who have inadvertently had to pay the Additional Dwelling Supplement (ADS).
The ADS was introduced to try to “level the playing field” because it was acknowledged that first-time buyers were being forced out of the market by buy-to-let landlords who were forcing up property prices. The ADS applies where a second or subsequent house is purchased by an individual or where a residential property is purchased by a company or other corporate body. The current ADS rate is 4% of the price paid and this is in addition to any Land & Buildings Transaction Tax due to be paid on the property.
The introduction of the ADS has one unintended consequence and that is where someone buys a new house as their own main residence but, for whatever reason, has been unable to sell, they then have to pay the ADS. In normal market conditions, where property is readily available to buy and sell, marketing and selling your property using our estate agency service is pretty straight forward. This allows the buyer to reclaim the ADS paid within the 18 months previously allowed before the coronavirus lockdown.
However, as the market ground to a halt with viewings barred and Home Reports being unavailable because surveyors couldn’t visit, over the last three months, it had been neigh on impossible to sell your house (although we have had successes with our virtual viewing service and some Home Reports could be prepared under certain circumstances).
Recognising this, the Scottish Government has extended the amount of time available to reclaim the ADS paid from 18 months to 36 months. However, this extention only applies to buyers of their new main residence who purchased between 24 September 2018 and 24 March 2020.
We believe that additional 18 months should be more than sufficient time within which to reclaim any ADS you’ve had to pay, especially if you engage us to market your property in the Scottish Borders!
If you are thinking about selling (whether you’ve had to pay the ADS or not), get in touch with us now. Whilst the market isn’t “officially” open, there are many things we can to do get your property market ready so if you’re looking to get out of the blocks fast, give us a call and we’ll look after everything for you.
If you are buying in Scotland you will need a Scottish Solicitor.
If you are selling, Hastings Legal are the top-selling Solicitor Estate Agents in the Borders.
Did You Know that with a Solicitor/Estate Agent you are more in control of Selling Your Property?
See our guides: Buying a House and Selling your House Legal Process
Share this Page
