Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 19 paragraph 28

Assignation of lease: transfer of obligations to assignee

Schedule 19 paragraph 28 sets out the rules for transferring LBTT compliance obligations from the original tenant (assignor) to the new tenant (assignee) when a lease is assigned.

• When a lease is assigned, the new tenant (assignee) takes over responsibility for all ongoing LBTT compliance obligations that would otherwise have fallen on the original tenant (assignor), provided the triggering event occurs after the effective date of the assignation.
• The obligations that transfer include filing returns for contingencies or ascertained consideration, linked transactions, three-yearly reviews, assignation or termination events, leases continuing beyond a fixed term, indefinite-term leases, and transactions that become notifiable due to rent or term variations.
• Any prior actions taken by or in relation to the original tenant are treated as if they had been done by or in relation to the new tenant, ensuring continuity of the compliance history.
• These transfer rules do not apply where the assignation is treated as the grant of a new lease by the assignor under paragraph 27, since in that case different LBTT rules apply to the transaction.

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