Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 8 paragraph 11

Condition D – standard security requirement

Schedule 8 paragraph 11 sets out Condition D, which requires that a first-ranking standard security in favour of Revenue Scotland be registered over the transferred property interest within 120 days, securing the tax that would otherwise be due plus any interest and penalties.

• Within 120 days of the effective date of the first transaction, the bond-holder (Q) must provide Revenue Scotland with prescribed evidence that a satisfactory standard security has been registered in the Land Register of Scotland.
• The standard security must be a first-ranking security granted over the interest transferred to Q, and it must be in favour of Revenue Scotland.
• The amount secured must cover the full LBTT that would have been chargeable on the first transaction if the chargeable consideration had been the market value of the interest at that time, disregarding the relief.
• The secured amount must also include any interest and penalties that would have been payable on that tax amount, calculated as though the tax had been due and payable but remained unpaid in respect of the first transaction.