Scottish Law Agents Society calls on Revenue Scotland to extend ADS tax reclamation period

Scottish Law Agents Society calls on Revenue Scotland to extend ADS tax reclamation period

The Scottish Law Agents Society (SLAS) has called on Revenue Scotland to extend the period within which additional dwelling supplement tax can be reclaimed – to 24 months.

SLAS raised concerns that its clients will suffer financial loss as a result of the current coronavirus pandemic where they are buying and selling their property.

In a letter to Revenue Scotland, the legal body expressed misgivings over people paying tax in an unforeseeable situation not of their making.

It said: “The government has issued advice that moving house should not take place under the current lockdown. Solicitors and estate agents are adhering to this advice and the house selling market has ground to a complete halt as a result. In some cases this has led to transactions being suspended for the duration of the lockdown and in others it has led to the collapse of sale transactions. When the lockdown is eventually brought to an end it is highly likely that there will be a continuing loss of confidence in the market and that the volume of transactions will take some considerable time to recover, thereby resulting in longer selling periods.

“Where someone buys and sells property additional dwelling supplement tax will be payable where the sale is later than the purchase. That tax can be reclaimed where the sale takes place within 18 months of the purchase. However, in the present circumstances where a sale is delayed or collapses this can result in the 18 month time limit being exceeded.

“Therefore, the Scottish Law Agents Society, advocates that the 18 month period whereby ADS can be reclaimed be extended from the applicable date of purchase of the new property to 24 months thereafter, which time may be extended if the lockdown continues.

“We are sure that you will appreciate the problem facing house buyers, and we would be grateful if you could let us know whether you see any difficulty with our proposal.”

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