Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 4, paragraph 16

Withdrawal of relief for property traders acquiring dwellings from individuals

Paragraph 16 of Schedule 4 sets out the circumstances in which LBTT relief for property traders who acquire a dwelling from an individual (where a chain of transactions has broken down) will be withdrawn.

• Relief under Part 4 of Schedule 4 applies where a property trader acquires an old dwelling from an individual after a chain of property transactions has collapsed.
• The relief is withdrawn if the property trader spends more than the permitted amount on refurbishing the old dwelling.
• The relief is also withdrawn if the property trader grants a lease or licence over the old dwelling to another party.
• The relief is withdrawn if the property trader allows any of its principals, employees, or persons connected with its principals or employees, to occupy the old dwelling.