Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 3 paragraph 1

Exemption for leaseback element of sale and leaseback arrangements

Schedule 3 paragraph 1 establishes that the leaseback element of a sale and leaseback arrangement is exempt from LBTT, provided the qualifying conditions are satisfied.

• In a sale and leaseback arrangement, the seller sells a property and then leases it back from the buyer
• The leaseback element (i.e. the lease granted back to the original seller) can be exempt from LBTT
• The exemption only applies if the relevant qualifying conditions are met
• The sale element of the arrangement is not covered by this exemption and remains subject to LBTT in the normal way