CHAPTER 1. Land transactions and chargeable interests
Acquisition and disposal of chargeable interest
CHAPTER 2. Provision about particular transactions
General rules for contracts requiring conveyance
Contract providing for conveyance to third party
CHAPTER 3. Chargeable transactions and chargeable consideration
Contingent, uncertain or unascertained consideration
Deemed market value
PART 3. Calculation of tax and reliefs (P)
Amount of tax chargeable
Liability for tax
PART 4. Returns and payment (P)
CHAPTER 1. Returns
Duty to make return
Adjustments and further returns
Returns: form and content etc.
CHAPTER 2. Payment of tax
CHAPTER 3. Registration of land transactions etc.
PART 5. Application of act to certain persons and bodies (P)
PART 6. Application of Act to leases and licences (P)
PART 7. General and interpretation
The Tax Authority
Linked transactions (P)
Connected persons (P)
PART 8. Final provisions
Commencement and short title
Land and Buildings Transaction Tax (Scotland) Act 2013
2013 asp 11
The Bill for this Act of the Scottish Parliament was passed by the Parliament on 25th June 2013 and received Royal Assent on 31st July 2013
An Act of the Scottish Parliament to make provision about the taxation of land transactions.
PART 1 Land and buildings transaction tax (PROSPECTIVE)
1 The tax
(1) A tax (to be known as land and buildings transaction tax) is to be charged on land transactions.
(2) The tax is chargeable—
(a) whether or not there is an instrument effecting the transaction,
(b) if there is such an instrument, whether or not it is executed in Scotland, and
(c) whether or not any party to the transaction is present, or resident, in Scotland.
(3) The Tax Authority is to be responsible for the collection and management of the tax.
This Act is arranged as follows—
Part 2 makes provision for the key concepts underlying the tax including—
(a) which transactions are land transactions,
(b) which interests are, and which are not, chargeable interests in land,
(c) when a chargeable interest is acquired and the treatment of transactions involving contracts which require to be completed by conveyance as well as other kinds of transaction,
(d) which land transactions are, and which are not, chargeable transactions,
(e) what is, and what is not, chargeable consideration in relation to a chargeable transaction,
Part 3 makes provision for—
(a) the amount of tax payable,
(b) relief from the tax, and
(c) who is liable to pay the tax,
Part 4 provides for returns relating to land transactions and for the payment of the tax,
Part 5 contains provision about the application of the Act in relation to certain types of buyer, including companies, partnerships and trusts,
Part 6 contains provision about the application of the Act to leases and non-residential licences,
Part 7 contains general provision, including provisions about the Tax Authority and definitions of expressions used in the Act,
Part 8 contains provisions on subordinate legislation powers and commencement as well as other final provisions.
PART 2 Key concepts (PROSPECTIVE)
CHAPTER 1 Land transactions and chargeable interests
3 Land transaction
A land transaction is the acquisition of a chargeable interest.
4 Chargeable interest
(1) A chargeable interest is an interest of a kind mentioned in subsection (2) which is not an exempt interest.
(2) The interests are—
(a) a real right or other interest in or over land in Scotland, or
(b) the benefit of an obligation, restriction or condition affecting the value of any such right or interest.
(3) In subsection (2) , “land in Scotland” does not include land below mean low water mark.
5 Exempt interest
(1) An interest is exempt if it is a security interest.
(2) In subsection (1) a “security interest” means a real right or other interest in or over land held for the purpose of securing the payment of money or the performance of any other obligation.
(3) See also paragraphs 21 to 24 of schedule 7 (which make additional provision about exempt interests in relation to alternative property finance arrangements).
(4) The Scottish Ministers may, by regulations, modify this section so as to—
(a) provide that a description of a real right or other interest in or over land is an exempt interest,
(b) provide that a description of a real right or other interest in or over land is no longer to be an exempt interest,
(c) vary a description of an exempt interest.
Acquisition and disposal of chargeable interest
6 Acquisition and disposal of chargeable interest
(1) Each of the following is an acquisition and a disposal of a chargeable interest—
(a) the creation of the interest,
(b) the renunciation or release of the interest,
(c) the variation of the interest (but not the variation of a lease).
(2) The variation of a lease is treated as an acquisition and a disposal of a chargeable interest only where paragraph 29 of schedule 19 (reduction of rent or term or other variation of lease) applies.
(3) A person acquires a chargeable interest where—
(a) the person becomes entitled to the interest on its creation,
(b) the person's interest or right is benefitted or enlarged by the renunciation or release of the interest, or
(c) the person benefits from the variation of the interest.
(4) A person disposes of a chargeable interest where—
(a) the person's interest or right becomes subject to the interest on its creation,
(b) the person ceases to be entitled to the interest on its being renounced or released, or
(c) the person's interest or right is subject to or limited by the variation of the interest.
(5) Except as otherwise provided, this Act applies however the acquisition is effected, whether by act of the parties, by order of a court or other authority, by or under any enactment or by operation of law.
7 Buyer and seller
(1) The buyer, in relation to a land transaction, is the person who acquires the subject-matter of the transaction.
(2) But a person is treated as the buyer only where that person has given consideration for, or is a party to, the transaction.
(3) The seller, in relation to a land transaction, is the person who disposes of the subject-matter of the transaction.