Property Ownership Tax Solutions

Ask Your Question For Free

Summary

If you own a property with a partner and plan to buy a new one, you may face Additional Dwelling Supplement (ADS) under the Land and Buildings Transaction Tax (Scotland) Act 2013. ADS is typically required for second properties but may not apply if replacing a main residence within 18 months. If your share in the joint property is worth less than £40,000, ADS may not be applicable. Consult a tax solicitor for precise advice.

Full Conversation

I own a property with my partner (unmarried) we wish to separate. I plan to buy a new property. My partner will remain in our current property to the end of life. We had planned to not change anything with the deeds, and agreed that on his death I would remain the sole owner of the property. However, on attempting to buy my new property, I discovered I would have to pay over 10k in LBTT. The joint property was bought for *.5k in * it is */* ownership. Is there anything I can do that will retain my interest in the first property, without incurring LBTT on the new property?
Under the Land and Buildings Transaction Tax (Scotland) Act *:
- The purchase of a second property typically incurs Additional Dwelling Supplement (ADS).
- ADS may not apply if replacing a main residence within 18 months.
You could consult a tax solicitor to explore options.
but i still have to pay the tax and clain it back?
Yes, typically you would need to pay the ADS upfront and then apply for a refund once the previous main residence is sold within the *-month period. It's crucial to consult a tax solicitor for accurate advice.
what if the previous main residence is NOT sold and my ex partner remains ressident in it?
If your ex-partner continues to live in your previous main residence and it's not sold, you generally won't be eligible for a refund of the Additional Dwelling Supplement. It's recommended to consult a tax solicitor for precise advice.
WHAT IF MY SHARE IN THE JOINT PROPERTY IS WORTH LESS THAN £*,*
Under the Land and Buildings Transaction Tax (Scotland) Act *:
- If your share in the joint property is worth less than £*,*, it won't be considered as an additional property.
- Hence, the Additional Dwelling Supplement (ADS) may not be applicable.
Please consult a tax solicitor for tailored advice.