Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 18 para 12

Consideration for becoming an object of a power or discretion

Schedule 18 paragraph 12 deals with how any payment or consideration made in order to become a beneficiary of a power of appointment or discretion is treated for LBTT purposes.

• Where a person benefits from a power of appointment or the exercise of a discretion, any consideration they gave to become eligible is relevant for LBTT.
• The consideration in question is anything given so that the person becomes an "object" — that is, a potential beneficiary — of the power or discretion.
• That consideration is treated as the consideration for the acquisition of the land interest itself.
• This means LBTT is charged on any amount paid to secure eligibility as a beneficiary, as though it were the price paid for the property.