Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 5 paragraph 22

Timing rule for contracts substantially performed before completion

Schedule 5 paragraph 22 adjusts the timing rule in paragraph 21 where a contract has been substantially performed before it is formally completed.

• This paragraph applies where a property contract is substantially performed (e.g. the buyer takes possession or pays substantially all the consideration) before the formal completion date.
• When this happens, the relevant date for the purposes of the paragraph 21 rules is the date of substantial performance, not the date of formal completion.
• This ensures that the tax rules operate by reference to the earlier point in time when the transaction effectively took place in substance.
• This provision prevents taxpayers from gaining an advantage by delaying formal completion where the transaction has already been carried out in practice.