Land and Buildings Transaction Tax (Scotland) Act 2013 section Sch 17 para 35

Election to disapply special partnership rules on transfers to property-investment partnerships

Schedule 17 paragraph 35 allows the buyer to elect out of the special property-investment partnership rules (Part 4 of Schedule 17) when a chargeable interest is transferred to a property-investment partnership, with the consequence that the transaction is instead taxed at market value under the ordinary partnership transfer rules.

• When a chargeable interest is transferred to a property-investment partnership, the buyer can elect for the special property-investment partnership rules (Part 4 of Schedule 17) not to apply to the transaction.
• If an election is made, Part 5 of Schedule 17 (if relevant) is also disapplied, the chargeable consideration is taken to be the market value of the interest transferred, and the transaction is treated as falling within Part 3 of Schedule 17 (ordinary partnership transfers).
• The election must be included in the land transaction return or in an amendment to that return within the permitted amendment period, and once made, it is irrevocable.
• Where the election is made by amending the return, it takes effect from the date the original return was made, and returns for any affected transactions (being transfers of partnership interests under paragraph 32 with an effective date on or after the main transaction) may also be amended to reflect the election.