LBTT Scotland

WildBill78

First time poster, so apologies if this is in the wrong section!


To give a brief insight into my problem, I bought a second home in April last year and moved into it. I had to pay £7650 Additional Dwelling Supplement. My previous residence has been actively marketed for sale since not long after we moved out. I don't think it is fair that a tax that was designed to stop people owning/renting a second home is going to penalize myself and my partner.


It has never been and never will be our intention to own two homes or become landlords. Infact the property in question has had several price reductions (now £20,000 under valuation) to try to sell it, however the market has slowed significantly in our area.


From what I gather I stand to lose this payment if I don't sell my previous residence by September this year.


I believe I will one of the first people in this country to fall foul of this, and wondered if anyone was in the same boat or indeed could offer any advice?


Thanks in Advance


Billy

LdnFtB

You say you've reduced the asking price several times so now it's under valuation but have you considered that may have been significantly overvalued in the first place - it's only worth what someone's willing to pay for it. You may have to drop further and faster to secure a sale in time.

00ec25

Scotland has its own laws, you made them, you live by them. The fact you choose to keep it at 18 months whilst the rest of the UK extended it to 36 months is your decision.

you know the deadline, either you sell before then or you don't. Keep dropping the price and you will obviously reach a point where the price drop is more than the refund.

Complaining that "it's not fair" will get you nowhere since everyone always feels they are the ones being unfairly treated, but only when it impacts themselves, not when it impacts others.

WildBill78

LdnFtB, Of course I have considered it may have been overpriced, however going on the general area I can confidently say it is not. I realize everything is only worth what someone will pay, fact is now Im trying to limit my losses!


00ed25, Thanks for the letting me know it was 36 months in Rest of Britain, I was unaware of this! For your information I haven't made any laws here...Im not nearly powerful enough! I also never knew the deadline or indeed anything about this tax until after I had committed to buying my second property!


And I think I do have a right to complain that its not fair....a tax that was designed for a certain type of person is going to start hurting others! I personally think the whole second home tax is absurd but that's a different topic!

bob_bank_spanker

It's not really unfair though, is it? In times of a housing crisis you are sitting on an empty home. You are exactly the sort of person that this tax is trying to hit.

I think it's unfair that I have to pay income tax at a marginal rate of 62%. Many others disagree. Unfortunately, that's life.

As ever, life is about choices. You can reduce further, and guarantee a sale. Everything will sell for the right price.

Pixie5740

Yes rUK get 36 months to sell the previous main residence whilst Scotland only has 18 months but the buying and selling process is much quicker in Scotland than rUK.

Bit of a sore one that you purchased an additional residential dwelling just days or weeks after the ADS was introduced but you are where you are.

Priced correctly anything will sell. Since a home report is only valid for 12 weeks you must have had it re-done a few times since the property went on the market. Has the valuation changed between home reports?

If you're feeling brave you could post a link to the property for suggestions on how to improve its saleability.

WildBill78

Yes but I am not sitting on an empty home deliberately to gain myself. Its been costing me around £300 a month having it which I could do without tbh!


Thanks Pixie5740, it was a sore one and like I have said I knew nothing of it or else I would not have got myself into this situation! I appreciate I went into this with my eyes a bit closed but Im sure Im not the first person blinkered by their dream home!


I have had the home report done twice now, but tbh it seems a waste of time renewing them as the surveyor takes 5 minutes and basically doesn't change a thing! They were both exactly the same value fyi. The estate agent has been out several times and said theres nothing wrong just the market where I live is very slow at the minute!


What I had hoped is that I would have some grounds to grant an extension to the reclaim period as I can prove that the house has been marketed actively and never leased. It is by virtue of the market conditions and in no way related to any monetary gain that I am in this situation!

davidmcn

WildBill78 wrote: »

What I had hoped is that I would have some grounds to grant an extension to the reclaim period

There's nothing allowing you to ask for such a thing. It's a fixed period - either you've sold it or you haven't.

Rodders53

Ask the boss to change your Laws? https://www.parliament.scot/msps/currentmsps/99302.aspx

But give the EA a big fat kick to do something to get more viewings and progress a sale. You do not want excuses from them you want action! Better may be to give them notice and get another Agent on the case - at the right price! You do still have time to complete a sale if you get a wiggle on.

A link to the property ad might elicit some helpful critique of your old property how you might improve it's appeal?

WildBill78

I have emailed my local Mp in the first instance!


Says I cant post a link as a new user?!

00ec25

WildBill78 wrote: »

Says I cant post a link as a new user?!

just post up the words with a space in them and one of us will "convert" it, for example:

http://www.rightmove.co.uk/ property-for-sale/ property-59220322.html