Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 19 paragraph 13

Variable or uncertain rent

Schedule 19 paragraph 13 sets out how to determine the amount of rent for LBTT purposes where the rent payable under a lease varies, or is contingent, uncertain or unascertained.

• Where lease rent varies under the terms of the lease, or is contingent, uncertain or unascertained, special rules apply to determine the amount of rent for LBTT purposes.
• The general LBTT rules for contingent, uncertain or unascertained consideration (sections 18 and 19) apply to rent in the same way as they apply to other forms of chargeable consideration, but the further provision in section 20(b) does not apply.
• Rent is treated as uncertain or unascertained where there is a possibility it could be varied under the rent review provisions of the Agricultural Holdings (Scotland) Act 1991 or the Agricultural Holdings (Scotland) Act 2003.
• Any provision in the lease for rent to be adjusted in line with the retail prices index, the consumer prices index, or any similar index is to be disregarded when applying this paragraph.