Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 11 paragraph 31

Partial withdrawal of relief – proportionate tax charge

Schedule 11, paragraph 31 explains how the tax charge is calculated when reconstruction relief or acquisition relief is only partially withdrawn, rather than fully withdrawn.

• When relief is partially withdrawn, the full amount of tax is not charged — only a proportionate amount applies.
• The starting point for the calculation is the full tax that would have been due had no relief been claimed (as determined under paragraph 30).
• An "appropriate proportion" of that full tax amount becomes the actual tax chargeable.
• This ensures the tax clawback reflects only the extent to which the conditions for relief have ceased to be met.