Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 1, paragraph 3

Exempt transactions: residential leases and licences to occupy

Schedule 1, paragraph 3 sets out that certain residential leases and licences to occupy property are exempt from LBTT, meaning no tax return or payment is required in respect of them.

• The grant, assignation or renunciation of a residential lease is exempt from LBTT, provided it is not a "qualifying lease" (broadly, an ultra-long lease as defined in the Long Leases (Scotland) Act 2012)
• The grant, assignation or renunciation of a licence to occupy property is also exempt, unless it is a type of non-residential licence specifically prescribed by the Scottish Ministers in regulations
• The residential lease exemption only applies where the transaction relates entirely to residential property — if any part of the property is non-residential, the exemption is lost
• Where the transaction is one of a number of linked transactions, every linked transaction must also relate entirely to residential property for the exemption to apply