Land and Buildings Transaction Tax - Additional Dwelling Supplement: call for evidence – summary of responses

Overview of findings and summary of responses to our call for evidence and views on the Land and Buildings Transaction Tax (LBTT) Additional Dwelling Supplement (ADS). It also sets out the Scottish Government’s response to the call for evidence.

3. Summary of Proposed Amendments

The Scottish Government intends to consult on legislation to provide for the following amendments to the Land and Buildings Transaction Tax (Scotland) Act 2013:

3.1 Inherited property – provisions in respect of inheritances of properties where missives have been signed in respect of an additional property, and a clarifying amendment in respect of when an inherited property is considered 'owned' for LBTT purposes.

3.2 Small shares – a provision to exempt interests in property from consideration for ADS purposes where the value of that interest is less than £40,000.

3.3 Divorce or Separation – a provision disregarding a retained interest in a property for ADS purposes, where the interest is required to be retained by court order or equivalent legal agreement.

3.4 Joint Buyers and Economic Units – provisions to provide certainty and clarity for taxpayers.

3.5 Local Authorities – provisions to provide parity of treatment, as far as necessary, between Local Authorities and Registered Social Landlords for LBTT and ADS purposes.

3.6 Extending relevant timelines for the ADS from 18 months to 36 months.



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