Who can claim sub-sale development relief under Schedule 10A of the Land and Buildings Transaction Tax (Scotland) Act 2013?

Sub-sale development relief may be claimed by the 'first buyer' — the person who entered into the original contract (the 'first contract') to acquire a chargeable interest in land or buildings in Scotland. The first buyer must be the party under the original acquisition contract, not a subsequent buyer in a chain.

What conditions must be met to claim sub-sale development relief under LBTT Schedule 10A paragraph 2?

Two conditions must both be satisfied. First, there must be a 'qualifying sub-sale' where the first buyer arranges to pass the interest to another party before the original conveyance completes. Second, the 'qualifying conditions' specified elsewhere in the schedule must be met. Both requirements are mandatory.

Why must the first contract be completed by way of conveyance for LBTT sub-sale development relief?

The first contract must be completed by a formal conveyance — a legal transfer of title — because the relief applies where a gap exists between contractual agreement and completion. This gap allows a sub-sale arrangement to arise before the original conveyance takes place, which is essential for the relief to operate.

Can a sub-sale or assignation of rights itself qualify as the first contract for Schedule 10A relief?

No. The first contract must be a genuine original purchase contract. It cannot itself be a sub-sale or an assignation of rights under another contract. This restriction prevents relief being claimed in chains of sub-sales where the claimant is not the original buyer in the chain.

Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 10A paragraph 2

Claiming sub-sale development relief

Schedule 10A paragraph 2 sets out who may claim sub-sale development relief and the basic conditions that must be satisfied before a claim can be made.

The relief is available to a buyer (referred to as the "first buyer") who has entered into a contract (the "first contract") to acquire a chargeable interest in land or buildings.
The acquisition under the first contract must be one that is to be completed by a formal conveyance (i.e. a transfer of legal title).
Two conditions must both be met: there must be a qualifying sub-sale, and the qualifying conditions specified elsewhere in the schedule must be satisfied.
The first contract cannot itself be a sub-sale or an assignation of rights under another contract — it must be an original acquisition contract.

Access full legislation.And much more.

By becoming a member, your team gets full access to Tax World research tools and source-backed tax resources.

Become a member