Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 5 paragraph 28

Transactions involving dwellings yet to be constructed or adapted

Paragraph 28 of Schedule 5 deals with situations where a transaction is treated as involving a dwelling even though the building in question has not yet been constructed or adapted at the point the transaction takes effect.

• This provision applies where a contract is substantially performed before completion, and that substantial performance is treated as the effective date of the transaction.
• The transaction must involve an interest in a building, or part of a building, that is intended to be constructed or adapted under the contract for use as a single dwelling.
• Construction or adaptation of the building (or part of a building) must not yet have started at the time the contract is substantially performed.
• Where all these conditions are met, the transaction is treated as one that consists of or includes an interest in a dwelling, even though the dwelling does not yet physically exist.