Does ADS relief for purchasing six or more dwellings apply automatically in Scotland?

No, relief from the additional dwelling supplement on purchases of six or more dwellings does not apply automatically. The buyer must make a positive claim for it, either in the original LBTT return submitted for the transaction or in a subsequent amendment to that return within the permitted time limit.

How must a claim for ADS relief on six or more dwellings be made?

The claim must be included in the original LBTT return filed for the transaction or in an amendment to that return. It cannot be made through any other route such as a standalone application or a separate letter to Revenue Scotland. Including the claim in the original return is advisable to avoid missing the deadline.

What is the time limit for claiming ADS relief on purchases of six or more dwellings?

The time limit is governed by section 83 of the Revenue Scotland and Tax Powers Act 2014, which generally allows an LBTT return to be amended within 12 months of the filing date. If the buyer does not claim the relief within this amendment window, the opportunity to claim is permanently lost.

What happens if a buyer forgets to claim ADS relief in the original LBTT return?

If the claim is omitted from the original return, the buyer can still submit an amended return including the claim within the 12-month amendment period under the Revenue Scotland and Tax Powers Act 2014. However, once that 12-month window expires without an amendment, the relief is lost and the ADS remains payable.

Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 2A paragraph 10

Claiming relief for purchases of 6 or more dwellings

Paragraph 10 of Schedule 2A sets out when and how a claim for relief from the ADS on purchases of six or more dwellings must be made.

Relief from the ADS on purchases of six or more dwellings must be actively claimed — it is not applied automatically.
The claim must be made either in the first LBTT return submitted for the transaction or in an amendment to that return.
There is a statutory time limit for amending an LBTT return, set out in section 83 of the Revenue Scotland and Tax Powers Act 2014.
If the claim is not made within the permitted amendment period, the opportunity to claim the relief is lost.

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