Claim for additional dwelling supplement - land and buildings transaction tax

The taxpayer and his now ex-wife lived in a property until April 2016. In July 2017 the taxpayer and his new partner (Ms M) bought a second property. Ms M had not previously owned a home. They submitted the land and buildings transaction tax return and paid the additional dwelling supplement. In December 2018 the taxpayer transferred his share of the first property to his ex-wife and claimed a repayment of the additional dwelling supplement.

Revenue Scotland refused because Ms M had not lived in the first property.

The taxpayer appealed saying the legislation was unfair because Ms M could never have resided in the first property. Further the legislation had been introduced to minimise the impact of buyers of rental properties and second homes on first-time buyers which was not the case here. Indeed Ms M was a first-time buyer and the taxpayer was in effect...