Guide to Claiming Additional Dwelling Supplement Repayment from Revenue Scotland

Claiming a repayment of Additional Dwelling Supplement in Scotland

Revenue Scotland says an ADS repayment claim must be made using the correct route for the person submitting it. The process differs for the original agent, a new agent, a taxpayer acting personally, and someone acting under a power of attorney or as a guardian. Using the wrong method can delay repayment, and supporting evidence may be needed.

• If the same agent who filed the original LBTT return is still acting, the claim is usually made by amending that return in SETS.
• If a different agent is now acting and cannot amend the original return, they should use the ADS repayment claim form and email it to Revenue Scotland.
• If the taxpayer is claiming without an agent, they should use Revenue Scotland’s online repayment process; paper claims by post are not accepted.
• If someone is acting under a power of attorney or as a guardian, a separate form must be used and emailed to Revenue Scotland.
• Claims made more than 12 months after the original filing date may need proof of sale of the previous home and evidence that it was the main residence of all buyers during the relevant period.
• Revenue Scotland aims to process claims within 10 working days once it has all relevant information, but it may carry out checks or open an enquiry before making repayment.

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How to claim a repayment of Additional Dwelling Supplement (ADS) in Scotland

This page explains how Revenue Scotland says you must claim back Additional Dwelling Supplement (ADS), depending on who is making the claim. The key point is that the process is different for an existing agent, a new agent, a taxpayer acting personally, and someone acting under a power of attorney or as a guardian. Getting the route wrong can delay the repayment.

What this rule is about

ADS is the additional amount of Land and Buildings Transaction Tax (LBTT) that can apply when a buyer owns more than one dwelling. In some cases, ADS paid on a purchase can later be repaid, typically where the conditions for repayment are met after the original return was filed.

The source material is not mainly about whether you qualify for an ADS repayment. It is about the mechanics of making the claim and the evidence Revenue Scotland may require. It also shows that Revenue Scotland treats repayment claims as formal tax claims that can be checked, queried and, if necessary, investigated.

What the official source says

Revenue Scotland says the method for claiming a repayment depends on the claimant’s status:

• If the claim is made by the same agent who submitted the original LBTT return, that agent should amend the original return in SETS.
• If the claim is made by a different agent who cannot amend the original return in SETS, that agent should complete the ADS repayment claim form and email it to Revenue Scotland.
• If the taxpayer is making the claim personally, the taxpayer should use the online repayment claims process.
• If a person is acting under a power of attorney or as a guardian, a separate repayment form should be used and emailed to Revenue Scotland.

Revenue Scotland says it aims to process repayment claims within 10 working days of receiving all relevant information. It also says repayment will include interest, with separate guidance dealing with interest on repayments.

However, Revenue Scotland also makes clear that some claims will take longer. That may depend on the nature of the claim, the evidence provided, and whether further information is needed.

The guidance also says Revenue Scotland routinely carries out checks and may open enquiries to make sure the right amount of tax has been paid and that the conditions for repayment are met.

What this means in practice

The practical message is simple: before thinking about forms and evidence, first identify who is entitled to submit the claim and by what route.

If the original filing agent is still acting, the claim is not usually made through a separate form. Instead, it is made by amending the original LBTT return in SETS. That matters because the repayment is tied back to the original return.

If a different agent is now acting, Revenue Scotland expects a separate claim form by email. This reflects the fact that the new agent may not have the same system access to amend the original filing.

If the buyer is claiming personally, Revenue Scotland expects the online taxpayer process to be used. Paper claims by post are no longer accepted for taxpayers.

If the claim is made by an attorney or guardian, Revenue Scotland requires a specific form for that situation. This suggests that authority and identity are especially important where someone is acting on another person’s behalf.

The guidance also highlights two practical evidence points for some form-based claims:

• If the claim is made more than 12 months after the filing date of the original return, proof of sale of the previous property must be sent with the claim form.
• Proof is also required that the previous property was occupied by all buyers as their main residence at some point during the relevant period before the effective date of the new purchase.

The source says the relevant period may be 18 or 36 months depending on the effective date. It does not set out the substantive ADS repayment rules in full here, but it does make clear that evidence of both sale and prior main-residence occupation may be needed.

How to analyse it

A sensible way to approach an ADS repayment claim is to work through the following questions.

• Who is making the claim? The buyer, the original agent, a new agent, or a person acting under a power of attorney or as guardian?
• Was the original LBTT return filed by the same agent who is now dealing with the repayment? If yes, amendment through SETS is usually the correct route.
• Is the claim being made by a new agent who cannot amend the original return? If yes, use the repayment claim form and email process.
• Is the buyer making the claim personally? If yes, use the online taxpayer process rather than post.
• Is the claim being made more than 12 months after the filing date of the original return? If yes, the guidance says proof of sale of the previous property must be supplied with the form.
• Can you prove that the previous property was occupied by all buyers as their main residence at some point in the relevant period before the purchase of the new property?
• Do you have supporting evidence ready, such as a disposition, land registration documents, a solicitor’s letter confirming the sale date, council tax bills, utility bills, or bank statements?
• Are the bank details correct? Revenue Scotland says it validates bank details before the amended return updates to show the revised calculation.
• Where an agent is claiming, does the agent have proper authority from the buyer for the repayment and for dealing with the transaction generally?

For existing agents using SETS, the source material also shows that the system asks declaration questions. These include confirmation that the buyer has authorised repayment to the stated bank account and that the agent is authorised to make the claim. In practice, an agent should not treat these as mere formalities. They are part of the tax return and repayment process.

Example

A buyer paid ADS when purchasing a new home because their old home had not yet been sold. The same solicitor firm that submitted the original LBTT return is still acting. In that case, Revenue Scotland says the claim should be made by amending the original return in SETS, not by sending a separate repayment form.

Now change the facts slightly. The buyer has moved to a different adviser after the purchase, and the new adviser cannot amend the original return in SETS. In that case, Revenue Scotland says the new agent should use the ADS repayment claim form and email it, together with any required evidence.

If the buyer decides to deal with it without an agent, the buyer should use Revenue Scotland’s online taxpayer repayment process.

Why this can be difficult in practice

The source material is operational guidance, so it assumes the underlying entitlement to repayment has already been considered. In reality, many disputes arise not from the form itself but from whether the repayment conditions are actually met.

There are several practical difficulties:

• The correct route depends on status and system access, which can be easy to misunderstand when advisers change.
• The guidance refers to the relevant period being 18 or 36 months depending on the effective date, but it does not explain that timing framework in detail on this page.
• The requirement to show that the previous property was occupied by all buyers as their main residence can be fact-sensitive, especially where there were joint buyers, periods of absence, or mixed living arrangements.
• If more than 12 months have passed since the original filing date, documentary evidence becomes particularly important.
• Revenue Scotland may carry out checks or open an enquiry, so even a claim that appears straightforward may not be processed immediately.

There is also a system point in the source material: during the SETS amendment process, agents may see a question asking “How are you paying”. The guidance says this is a system error and is due to be fixed. That means users should not assume every on-screen prompt perfectly reflects the legal substance of the claim.

Key takeaways

• The way you claim an ADS repayment depends on who is making the claim: existing agent, new agent, taxpayer, attorney or guardian.
• Existing agents should usually amend the original LBTT return in SETS; taxpayers should use the online process; new agents and attorneys or guardians should use the relevant form and email it.
• Revenue Scotland may require evidence of sale and evidence that the old property was the buyers’ main residence, and claims can be checked or investigated before repayment is made.

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Useful article? You may find it helpful to read the original guidance here: Guide to Claiming Additional Dwelling Supplement Repayment from Revenue Scotland

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