Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 19 paragraph 2

Calculating tax where consideration includes rent

Schedule 19 paragraph 2 explains how to calculate the total LBTT due on a lease transaction where the consideration involves rent, or a combination of rent and other consideration (such as a premium).

• Where a lease transaction falls under Schedule 19, the consideration may consist of rent alone or rent combined with other forms of consideration (e.g. a lump sum premium).
• The tax on the rent element is calculated separately from any tax on the non-rent element.
• The total LBTT payable is the sum of the tax on rent and the tax on any other consideration.
• This two-part approach ensures each component of the consideration is taxed according to its own applicable rules and rates.