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

Qualifying conditions for sale and leaseback relief

Schedule 3, paragraph 3 sets out the three qualifying conditions that must be met for sale and leaseback relief to apply.

• The sale must be made wholly or partly in return for the leaseback being granted — the two transactions must be linked.
• Any additional consideration for the sale (beyond the leaseback itself) must be limited to cash payments or the assumption, satisfaction, or release of a debt, or both.
• Where both the seller and the buyer are corporate bodies at the effective date of the leaseback, they must not be members of the same group for group relief purposes.
• If any of these three conditions is not met, the sale and leaseback relief will not be available.