Land and Buildings Transaction Tax (Scotland) Act 2013 section 29

Variation of a lease treated as an acquisition of a chargeable interest

Schedule 19, paragraph 29 explains when a variation to a lease is treated as a new acquisition of a chargeable interest for LBTT purposes, covering rent reductions, other lease variations where the tenant pays consideration, and reductions to the lease term.

• A reduction in rent under a lease is treated as an acquisition of a chargeable interest by the tenant.
• Where the tenant pays consideration (other than increased rent) for a lease variation that does not change the rent or the term, this is also treated as an acquisition by the tenant.
• A reduction in the term of a lease is treated as an acquisition of a chargeable interest by the landlord.
• These rules ensure that significant lease variations are brought within the LBTT charge, even though no new lease is being granted.