What is partial relief under Schedule 16D paragraph 3 of the Land and Buildings Transaction Tax (Scotland) Act 2013?

Partial relief reduces the LBTT due on a land transaction where between 10% and less than 90% of the purchase price relates to qualifying green freeport land. The tax is reduced by the same percentage as the proportion attributable to qualifying green freeport land, with the remainder taxed normally.

How is LBTT partial relief for green freeport land calculated?

The relevant proportion of the purchase price attributable to qualifying green freeport land is determined. The LBTT otherwise due on the full transaction is then reduced by that same proportion. For example, if 60% of the price relates to qualifying green freeport land, the LBTT is reduced by 60%.

What is the qualifying period for green freeport LBTT partial relief?

The transaction must have its effective date within the five-year qualifying window starting on 1 October 2023 and ending on 30 September 2028. Any land transaction completing outside this period will not qualify for partial relief under Schedule 16D paragraph 3 of the Act.

What happens if less than 10% or 90% or more of the purchase price relates to qualifying green freeport land?

If less than 10% of the purchase price relates to qualifying green freeport land, no relief is available under this provision. If 90% or more of the price is attributable to qualifying green freeport land, full relief under a separate provision would typically apply instead of partial relief.

Land and Buildings Transaction Tax (Scotland) Act 2013 section 3

Partial relief

Section 3 of Schedule 16D deals with partial relief from LBTT where only part of a land transaction relates to qualifying green freeport land.

Partial relief applies when between 10% and less than 90% of the purchase price relates to qualifying green freeport land.
The transaction must take place between 1 October 2023 and 30 September 2028 to qualify.
The LBTT due is reduced by the same percentage as the proportion of the price attributable to qualifying green freeport land.
Where less than 10% of the price relates to qualifying green freeport land, no relief is available under this provision.

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