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

VAT as part of chargeable consideration

Schedule 2 paragraph 2 establishes how VAT is treated when calculating the chargeable consideration for an LBTT transaction.

• VAT chargeable on a land transaction is generally included as part of the chargeable consideration for LBTT purposes.
• This means LBTT is calculated on the VAT-inclusive price, not the net price.
• There is an exception where a seller opts to tax the land for VAT purposes after the effective date of the transaction.
• If such a late option to tax is exercised, the resulting VAT is excluded from the chargeable consideration.