Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 13 paragraph 10

Meaning of "appropriate proportion"

Schedule 13 paragraph 10 defines what is meant by an "appropriate proportion" when calculating how much LBTT relief must be repaid following a disqualifying event involving charitable property.

• The appropriate proportion is a fair share determined by reference to two key factors.
• The first factor is a comparison between what the buyer originally acquired under the relevant transaction and what the buyer still holds at the time of the disqualifying event.
• The second factor is the extent to which the property still held by the buyer at that time has come to be used or held for purposes other than qualifying charitable purposes.
• Together, these two factors ensure that only a proportionate amount of relief is clawed back, reflecting what has actually ceased to qualify.