Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 18 paragraph 2

When the special rules about beneficiaries' interests in trust property apply

Schedule 18, paragraph 2 identifies the types of trusts to which the special rules in paragraphs 3 and 4 (concerning interests of beneficiaries) apply, based on the nature of the trust and the governing law.

• Paragraphs 3 and 4 of Schedule 18 apply to property held in trust under Scottish law or the law of a country outside the United Kingdom.
• The trust must be one where, if it were governed by the law of England and Wales, a beneficiary would be regarded as having an equitable interest in the trust property.
• This provision bridges the difference between Scottish trust law (which does not recognise equitable interests) and English trust law (which does), ensuring consistent LBTT treatment.
• The effect is that certain beneficiaries under Scottish or overseas trusts are brought within scope of the rules that follow in paragraphs 3 and 4.