Land and Buildings Transaction Tax (Scotland) Act 2013 section Sch 4 para 14

Withdrawal of relief for property traders acquiring old dwellings

Schedule 4, paragraph 14 sets out the circumstances in which a property trader loses the LBTT relief it received when acquiring an old dwelling from an individual who is purchasing a new dwelling.

• Relief granted under Part 3 of Schedule 4 can be withdrawn from a property trader after the acquisition has taken place if certain conditions are breached.
• Relief is withdrawn if the property trader spends more than the permitted amount on refurbishing the old dwelling it acquired.
• Relief is also withdrawn if the property trader grants a lease or licence over the old dwelling to anyone.
• Relief is withdrawn if the property trader allows any of its principals, employees, or persons connected with them to occupy the old dwelling.