Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 19 paragraph 26

Missives of let followed by a formal lease

Schedule 19, paragraph 26 deals with what happens for LBTT purposes when a lease is first created by concluded missives of let and a formal lease document is executed at a later date.

• When concluded missives of let are later followed by a formal lease, the original missives are treated as the lease, running from the date of the missives through to the end of the formal lease term, with rent and other consideration combined across both.
• The later formal lease is generally disregarded for LBTT purposes, except that it triggers the linked transaction rules requiring a further return under section 34.
• The tenant under the formal lease (not the original missives tenant, if different) is liable for any tax or additional tax arising from the combined treatment of the two transactions.
• This paragraph only applies where the formal lease either conforms with, or relates to substantially the same premises and lease term as, the original missives of let.