Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 8 paragraph 18

Calculating the chargeable amount when first transaction relief is withdrawn

Schedule 8, paragraph 18 explains how to calculate the tax that becomes due when relief on the first transaction in an alternative finance investment bond arrangement is withdrawn.

• When the relief previously granted on the first transaction under paragraph 15 is withdrawn, the tax charge must be calculated as if the relief had never applied.
• If the first transaction involved purchasing land or buildings, the chargeable consideration is taken to be the market value of the property at the time of that transaction.
• If the first transaction involved the grant of a lease rather than a purchase, the chargeable consideration is taken to be the rent payable under that lease.
• The resulting tax figure represents the amount that would originally have been due had the relief not been available.