Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 7 paragraph 21

Exempt interest held by financial institution

Paragraph 21 of Schedule 7 provides that the interest in land acquired by a financial institution under the initial step of an alternative property finance arrangement is treated as exempt from LBTT.

• When a financial institution acquires an interest in land as the first step of an alternative finance arrangement, that interest is treated as exempt for LBTT purposes.
• This applies to arrangements where land is sold to a financial institution and then leased back to the individual (paragraph 2(a) arrangements).
• It also applies to arrangements where land is purchased jointly by a financial institution and an individual as co-owners (paragraph 7(a) arrangements).
• The exemption ensures that the financial institution's holding of the property interest during the finance period does not give rise to an LBTT charge.