Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 14 paragraph 2

The qualifying condition for local authority compulsory purchase

Schedule 14 paragraph 2 sets out the qualifying condition that must be met for relief from LBTT where a local authority acquires land or property through compulsory purchase on behalf of another person.

• The relief applies where a local authority has made a compulsory purchase order in respect of the chargeable interest (the land or property being acquired).
• The compulsory purchase must be for the purpose of facilitating an activity or purpose carried out by another person, not the local authority itself.
• The relevant activities or purposes are those specified in section 189 of the Town and Country Planning (Scotland) Act 1997, which deals with compulsory acquisition of land for development and other planning purposes.
• Both the compulsory purchase order and its connection to the specified planning purposes must be satisfied for the qualifying condition to be met.