Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 17 paragraph 33

Exclusion of certain leases from relevant partnership property

Schedule 17 paragraph 33 sets out the conditions under which a lease held as partnership property is excluded from being treated as "relevant partnership property" when an interest in a property investment partnership is transferred.

• A lease held by a partnership can be excluded from the charge on transfers of partnership interests if four conditions relating to the lease terms and rent are all satisfied.
• The lease must have been granted for rent only at market rate, with no other chargeable consideration paid or arranged.
• For leases longer than five years, there must be rent reviews at least every five years that reset the rent to market level.
• There must have been no changes to the lease since it was granted that have reduced the rent below market rent.