In Andrew John Edward Clark v Revenue Scotland [2018] FTSTC 4, the First Tier Tribunal for Scotland found that the Additional Dwelling Supplement (ADS) was not repayable when a second property was merged into one.
ADS is payable under Scottish Land and Buildings Transaction Tax (LBTT) when a person buys a second property. It is refundable if the taxpayer disposes of the first property within 18 months of buying the second.
The taxpayer bought a property known as 8 Mortonhall Road. Historically, part of that property had become a second property known as 8B. The taxpayer bought 8B and paid LBTT and ADS. He then converted the two properties back to one large dwelling. They were re-registered as one dwelling for council tax.
The taxpayer applied for a refund of ADS. This was refused. The Tribunal agreed that the taxpayer had not “disposed” of any property.
Links
Additional Dwelling Supplement (ADS)
A subscribers' guide outlining the breakdown of charges and transaction process.
Land and Buildings Transaction Tax (LBTT) (Scotland)
Replacing stamp duty land tax, this subscribers' guide goves a full overview of transaction details, property types, relief and schedules.
External Links
Andrew John Edward Clark vs [2018] FTSTC 4
