ICAEW.com works better with JavaScript enabled.


Scotland’s additional dwelling supplement: ICAEW responds to proposed changes


Published: 04 Apr 2023 Update History

ICAEW expresses disappointment at the scope of inherited interest rules and highlights possible improvements to the draft legislation.

The Scottish government plans to make several changes to the rules concerning when the additional dwelling supplement applies to residential property purchases. 

Commenting on the draft legislation in ICAEW REP 29/23, ICAEW’s Tax Faculty expressed disappointment that the Scottish government has chosen not to align its rules on inherited interests with those in operation in England, Wales, and Northern Ireland. While acknowledging that the Scottish government is free to set the rules in line with the policy intent, the faculty highlights that divergence between the rules in Scotland and the rest of the UK creates complexity for taxpayers and increases the risk of taxpayer error. 

ICAEW also responded to selected specific questions in the consultation where it considers the draft legislation could be improved. This includes clarifying when property is inherited, the rules on divorce and separation, and the economic unit provisions. 

The Tax Faculty

ICAEW's Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.

More support on tax

ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.

Sign up for TAXwireJoin the Tax Faculty

More from the Tax Faculty

Latest news
Making tax digital image

Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter

Practical guidance

Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.

Technical support
Tax Faculty image

Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.