Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 7 paragraph 3

Exemption from charge for the first transaction

Paragraph 3 of Schedule 7 sets out when the first transaction in an alternative finance arrangement is exempt from LBTT charge, based on who the seller is.

• The first transaction in an alternative finance arrangement may be exempt from LBTT
• The exemption applies where the seller is the individual (the person) who entered into the arrangement with the financial institution
• The exemption also applies where the seller is another financial institution that previously acquired the interest under a similar alternative finance arrangement with the same person
• This ensures that property transfers forming part of Sharia-compliant or similar financing structures are not subject to a double tax charge