Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 19 paragraph 20

Leases that continue after a fixed term

Paragraph 20 of Schedule 19 sets out how LBTT treats leases that continue beyond their original fixed term, either because the lease allows continuation until terminated or because the law permits the lease to run on.

• Leases that run on after their fixed term are treated as extending by one year at a time for LBTT purposes, with each additional year potentially triggering a new return obligation.
• Where the deemed one-year extension makes the transaction notifiable for the first time, a return must be filed within 30 days of the end of that one-year period, with tax calculated at the rates in force at the original effective date.
• If the lease actually terminates part-way through a deemed one-year extension, the extension is cut short to the actual termination date, and the filing deadline adjusts accordingly.
• For the purposes of determining whether the original grant of the lease is notifiable, only the original fixed term is considered — the deemed extensions do not apply to that initial notification test.