Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 17 paragraph 13

Chargeable consideration for transfer of interest to a partnership

Schedule 17, paragraph 13 sets out how to calculate the chargeable consideration when a chargeable interest in land is transferred to a partnership, and identifies which partners are responsible for the tax.

• The chargeable consideration is calculated using a formula based on the market value of the interest transferred and the "sum of the lower proportions" (SLP), as defined in paragraph 14.
• The formula is: Market Value × (100% − SLP), meaning the chargeable consideration is reduced to reflect the extent to which the transferor retains an indirect interest through the partnership.
• Responsibility for the tax falls on partners who were already in the partnership before the transfer and remain afterwards, plus any person who becomes a partner as a result of or in connection with the transfer.
• This paragraph does not apply where the whole or part of the chargeable consideration consists of rent — in that case, separate rules for leases under paragraph 29 apply instead.