The First-tier Tribunal for Scotland has dismissed an appeal against a decision of Revenue Scotland to deny repayment of additional dwelling supplement (ADS) paid on a second property, agreeing that a disposal of an existing property failed to take place within the required 18-month window (Tavendale v Revenue Scotland  FTSTC 1).
The date of the purchase of the second property was 26 February 2021, meaning that the existing property would have to have been sold by 27 August 2022 to meet the repayment conditions.
The appellant notified Revenue Scotland that the property had been sold on 23 August 2022, being the date of a qualified acceptance letter from the appellant’s agent to the agent acting for the purchaser. However, under land and buildings transaction tax the effective date is the date of completion, which is when the transaction is settled. In practical terms, this is the date of entry, which in this case was 29 September 2022. This was after the after the end of the relevant statutory time limit, so the appellant had not met all of the statutory conditions for the repayment of the ADS.
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