Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 7 paragraph 10

Transfer resulting from exercise of right to acquire further share

Paragraph 10 of Schedule 7 sets out the conditions under which a further transfer of a share in property from a financial institution to the individual — arising from the exercise of a buy-out right under a shared ownership Islamic finance arrangement — is exempt from LBTT.

• When the individual exercises their right to acquire a further share of the property from the financial institution, the resulting transfer (the "further transaction") can be exempt from LBTT.
• The exemption only applies if the LBTT rules were properly complied with in relation to the original (first) transaction.
• Between the first transaction and the further transaction, the property interest must have been continuously held as common ownership by the financial institution and the individual.
• Throughout that same period, the individual must have been occupying the land under the terms of the occupancy agreement that formed part of the original arrangement.