Land and Buildings Transaction Tax (Scotland) Act 2013 section Sch 2 para 13

Employment-linked transactions: minimum consideration at market value

Schedule 2 paragraph 13 ensures that where a land transaction arises because of the buyer's employment (or the employment of someone connected to the buyer), the consideration cannot be treated as less than the market value of the property.

• This rule applies when a land transaction takes place by reason of the buyer's employment, or the employment of a person connected with the buyer.
• In such cases, the consideration (the price used for tax purposes) must be treated as being at least equal to the market value of the property at the effective date of the transaction.
• This prevents LBTT from being reduced or avoided where an employer sells or transfers property to an employee (or someone connected to the employee) at below market value as part of the employment relationship.
• If the actual price paid exceeds the market value, the actual price remains the relevant figure; the rule only sets a floor, not a ceiling.