Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 12 paragraph 1

Transfer of a chargeable interest to a limited liability partnership on incorporation

Schedule 12, paragraph 1 provides an exemption from LBTT when a chargeable interest in land is transferred to a newly incorporated limited liability partnership, provided certain qualifying conditions are satisfied.

• When a person transfers a chargeable interest (such as land or buildings) to a limited liability partnership (LLP) as part of the process of incorporating that LLP, the transaction may be exempt from LBTT.
• The person making the transfer is referred to as "the transferor."
• The exemption only applies where the transfer is made in connection with the incorporation of the LLP — it does not cover transfers made at a later date for other purposes.
• The exemption is not automatic: certain qualifying conditions must be met for the relief to apply.