Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 11 paragraph 2

Exemption from charge for transfers of undertakings

Schedule 11 paragraph 2 sets out the basic rule that a land transaction can be exempt from LBTT where it takes place as part of, or in connection with, the transfer of a business undertaking (or part of one), provided certain qualifying conditions are satisfied.

• A land transaction may be wholly exempt from LBTT if it relates to the transfer of an undertaking or part of an undertaking.
• Two requirements must both be met: the transaction must be for the purposes of or connected with the transfer, and the qualifying conditions must be satisfied.
• The exemption applies to the transfer of an entire undertaking or just a part of one.
• If either condition is not met — i.e. the transaction is unrelated to a transfer of an undertaking, or the qualifying conditions are not satisfied — the exemption does not apply and LBTT will be chargeable in the normal way.