Scottish LBTT additional dwelling supplement changes

The Scottish government has made the draft Land and Buildings Transaction Tax (Additional Amount-Second Homes Main Residence Relief) (Scotland) Order 2017, to ensure that relief is available as intended from the land and buildings transaction tax supplement on additional residential properties for couples jointly buying a new main residence to replace a former main residence, in circumstances where the title to the former home is in the sole name of one of the partners.

This amendment corrects an unintended restriction on the relief, owing to the current legislation treating a couple as a single economic unit. The general policy intention was to allow the supplement to be reclaimed where the former residence is sold within 18 months.

Although the additional dwelling supplement applies from April 2016, this amendment to the relief will not be retrospective, but will apply only to transactions with an effective date on or after 30 June 2017, where the contract is entered into on or after 20 May 2017.