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Second Homes in Scotland
SF100
Posted: 18 November 2023 13:05:53(UTC)
#1

Joined: 08/02/2020(UTC)
Posts: 2,259

We own one property in Scotland, which is our permanent residence.
We would prefer to buy a new permanent residence prior to selling our current one, purely to remove the time pressure of having to find a new home once we find a buyer for ours.

There is the Additional Dwelling Supplement (ADS) in Scotland, basically a tax-take from 2nd-homers, basically a deterrent thus enhancing opportunities for fist-time-buyers and lower incomes.

So if we buy a new home, hence owning two homes with a view to selling the former asap, would I be correct in thinking that there is an 18 month grace period, i.e we can reclaim the ADS as long as we sell our former (current) home within 18 months?

Anyone any experience of this?


This is about the simplest explanation I have found thus far:
(courtesy of https://www.innesjohnsto...ment-tax-complications/)

"........If you have not sold your previous main residence before purchasing your new home, but sell the previous main residence within 18 months of purchasing the new home, you can apply for a refund from Revenue Scotland on any ADS tax you paid. Your solicitor can deal with this for you. If, however, you do not sell your previous main residence within 18 months you will not be eligible for a refund......."
Helen Bess
Posted: 07 February 2024 15:34:31(UTC)
#2

Joined: 14/03/2021(UTC)
Posts: 41

Yes, you are right, there is an 18-month grace period in Scotland where you may be able to reclaim the Additional Dwelling Supplement (ADS) if you sell your former home within that timeframe. However, I'd consult with a professional accountant or a legal expert who can provide accurate and up-to-date information based on your specific circumstances.
Lex Further
Posted: 10 February 2024 22:00:52(UTC)
#3

Joined: 18/09/2021(UTC)
Posts: 181

Good luck with everything! I am considering to take mortgage myself and already started to research the market. At the moment reading different bridgecrest reviews and probably will try taking a mortgage from them. If someone gas something to say about these guys, please share.
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