A new exemption from the additional charge to land and buildings transaction tax for second homes is being proposed by the Scottish Government in a draft order laid before the Scottish Parliament.

Under the Land and Buildings Transaction Tax (Additional Amount-Second Homes Main Residence Relief) (Scotland) Order 2017, relief would be allowed from additional second homes tax where spouses, civil partners or co-habitants jointly buy a dwellinghouse but the house being replaced is owned by only one of them.

A repayment may also be claimed if, within 18 months of a chargeable transaction under which spouses, civil partners or cohabitants acquire a house as joint owners to be used as a main residence (and pay additional dwelling supplement on the transaction), one or other of the joint buyers disposes of a house that has been used by both of them as their main residence.

The draft order is subject to approval by resolution of the Parliament. If approved, it would apply to transactions the effective date of which is on or after 30 June 2017 and the contract for which is entered into on or after 20 May 2017.

Click here to view the draft order.