ADS repayment claim: getting the Additional Dwelling Supplement back

Who needs it

• Buyers who paid ADS because they still owned their previous main residence when they bought a new one.
• Buyers who have since sold that previous main residence within the 36-month window (18 months for effective dates up to 31 March 2024).
• Attorneys or guardians claiming for someone else, who use a separate claim form.

What you need before you start

• The LBTT return reference and effective date of the purchase where ADS was paid.
• Proof of sale of the previous main residence, such as the disposition, Registers of Scotland documents or a solicitor's letter giving the sale date.
• Proof that all buyers lived in the previous property as their main residence, such as a council tax bill, utility bill or bank statement.
• The bank details the repayment should go to.

How to file ADS repayment claim

1. 1Check the conditions on Revenue Scotland's ADS page: the previous property was your only or main residence, it was sold within the window, and the new property is now your main residence.
2. 2If the solicitor who filed the original return is still acting, ask them to amend that return in SETS and attach the supporting evidence.
3. 3If a different agent is acting and can't amend the return, they complete form RS-0005 and email it to lbtt@revenue.scot.
4. 4If you're claiming yourself, use Revenue Scotland's online repayment claim. Paper claims by post are no longer accepted.
5. 5If you're an attorney or guardian, use the separate ADS repayment claim form for attorneys and guardians and email it to lbtt@revenue.scot.

When ADS can be reclaimed

ADS is charged on top of LBTT when you buy an additional dwelling in Scotland. Revenue Scotland's ADS guidance explains that if you buy a new main residence before selling your old one, you pay ADS at first and can reclaim it once the previous main residence is sold.

For effective dates on or after 1 April 2024, the previous property must be sold within 36 months of buying the new one. For transactions up to and including 31 March 2024, the window was 18 months. From 1 April 2024, only one of the buyers needs to meet some of the conditions; Revenue Scotland's guidance sets out which.

The four ways to claim

Existing agent: the solicitor or conveyancer who submitted the original return amends it in SETS, attaching at least one supporting document and confirming the declarations and bank details.

New agent: an agent who didn't submit the original return, and can't amend it, completes form RS-0005 and emails it to lbtt@revenue.scot.

Taxpayer: you claim through Revenue Scotland's online repayment claims process.

Attorney or guardian: use the separate ADS repayment claim form for attorneys or guardians and email it to lbtt@revenue.scot.

Time limits

Revenue Scotland's ADS technical guidance says a repayment can be claimed by amending the original return within the 12-month amendment period. After that, you claim repayment of overpaid tax within 5 years of the tax return's due date.

If you claim more than 12 months after the filing date of the original return, send proof of the sale of the previous property with the claim.

After you claim

Revenue Scotland aims to process claims within 10 working days of receiving all the information it needs, though it can take longer or open an enquiry. The ADS is repaid with interest to the bank account given on the claim.

Common mistakes

• Selling outside the window and hoping for discretion. Revenue Scotland says the legislation gives it no power to consider exceptional circumstances, and the tribunal has upheld that.
• Sending a paper claim by post. Revenue Scotland no longer accepts them; use the online claim or ask your agent to amend the return.
• Leaving out the evidence. Mandatory fields must be completed, and a claim more than 12 months after the filing date needs proof of sale.
• Assuming the old 18-month window applies. For effective dates from 1 April 2024 the window is 36 months.