Land and Buildings Transaction Tax (Scotland) Act 2013 section Sch 10A para 16

Disregarding substantial performance on qualifying sub-sales

Schedule 10A paragraph 16 addresses how the concept of "substantial performance" applies when sub-sale development relief has been granted, specifically in relation to the first buyer entering into a qualifying sub-sale.

• Where sub-sale development relief is given under Schedule 10A, a specific element of the substantial performance rules is switched off.
• Section 14(1)(c) of the Act — which deals with one of the triggers for substantial performance of a land transaction — is to be disregarded.
• This disapplication only applies to the extent that it relates to the first buyer entering into the qualifying sub-sale arrangement.
• The effect is to prevent the first buyer's entry into the sub-sale from being treated as substantial performance of the original transaction, which would otherwise trigger a charge to LBTT.