Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 17 paragraph 14

The sum of the lower proportions in relation to the land transfer

Paragraph 14 of Schedule 17 sets out a step-by-step method for calculating "the sum of the lower proportions" in relation to a transfer of land into a partnership, which is used to determine how much of the transfer may be relieved from LBTT.

• The calculation identifies "relevant owners" (those who held an interest in the property before the transfer) and their "corresponding partners" (partners in the partnership after the transfer who are connected to those owners).
• Each relevant owner's share of the property before the transfer is apportioned among their corresponding partners.
• For each corresponding partner, the lower of two figures is taken: the total share apportioned to them from all relevant owners, or their partnership share immediately after the transfer.
• If there are no relevant owners with corresponding partners, the sum of the lower proportions is nil, meaning no relief applies.