Additional dwelling supplement should be more flexible

Revenue Scotland should have powers to waive the additional dwelling supplement (ADS) in exceptional circumstances said the Chartered Institute of Taxation in its response to a Scottish government consultation on reforming the supplement.

Further the time available for eligible house buyers to claim a tax rebate when they buy a new main home but their old one is still on the market should be doubled from 18 months to 36. This would bring Scottish legislation into line with England and Wales and make permanent a temporary measure introduced in Scotland at the start of the coronavirus pandemic.

CIOT director of public policy John Cullinane said: ‘The current 18-month timeframe is unlikely to provide a sufficient window in all circumstances for a taxpayer to buy a new home and then sell their old one. It is less generous than the rules that exist in other parts of...