The First-tier Tribunal for Scotland has dismissed an appeal against a decision not to repay additional dwelling supplement (ADS) on the purchase of a second property (McCarter v Revenue Scotland [2023] FTSTC 3).
The appellant had asked the tribunal to “waive the strict adherence” to one of the statutory conditions which he had to meet in order to reclaim the ADS. That condition was that the second property must have been his only or main residence at any time during the period of 18 months ending with the effective date of the transaction to purchase the first property. The appellant conceded that he did not occupy the second property at all in that 18 month period but asked the tribunal to consider “extenuating circumstances” which led to him not being able to live there.
The Tribunal summarised their decision as follows:
“The appellant properly paid Additional Dwelling Supplement (“ADS”) as he owned a property in Bathgate at the time of completing his purchase of the property in Glasgow. He did not occupy the property in Bathgate at any time in the period of 18 months ending with the date of the completion of the purchase of the property in Glasgow.
The appellant has not, therefore, met all of the statutory conditions required for the repayment of the ADS he paid.
Those statutory conditions are clear. There is no provision in the legislation for the Tribunal to consider extenuating circumstances in determining whether ADS should be repaid when any of those conditions have not been met.
More generally, the Tribunal only has the powers given to it by statute. It does not have jurisdiction to consider arguments of fairness or reasonableness in determining the matter in question in this appeal, being whether the ADS should be repaid.
Therefore, the ADS should not be repaid.”
http://www.taxtribunals.scot/decisions/[2023]%20FTSTC%203.pdf
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