What power does section 35E give Revenue Scotland regarding unpaid LBTT?

Section 35E empowers Revenue Scotland to issue a formal notice to any person identified as liable under paragraph 35B for unpaid LBTT following the withdrawal of reconstruction or acquisition relief. The notice requires the recipient to pay the outstanding tax amount within 30 days of receiving the notice, providing a practical enforcement mechanism for recovering withdrawn relief.

How long does a person have to pay after receiving a notice under paragraph 35E?

A person who receives a formal notice under paragraph 35E has exactly 30 days from the date of receipt to pay the outstanding LBTT amount. This strict deadline runs from the date the notice is received by the liable person, not from the date it was issued by Revenue Scotland. Prompt action is essential to comply.

Who can be served with a notice under section 35E?

Revenue Scotland may serve a notice under section 35E on any person who has been identified as liable for unpaid tax under paragraph 35B. That paragraph specifies categories of persons who may be held responsible when reconstruction or acquisition relief is recovered, which can include companies or individuals connected with the original transaction.

When does section 35E apply in practice?

Section 35E applies when reconstruction or acquisition relief has been withdrawn — for example, because a company left a corporate group within three years — resulting in additional LBTT becoming due. If that tax remains unpaid, Revenue Scotland uses this provision to issue a formal notice compelling the liable person to pay within 30 days.

Land and Buildings Transaction Tax (Scotland) Act 2013 section 35E

Recovery of relief: supplementary

Section 35E gives Revenue Scotland the power to issue a formal notice to a person liable for unpaid tax following the withdrawal of reconstruction or acquisition relief, requiring payment within 30 days.

Revenue Scotland may issue a formal notice to any person identified as liable under paragraph 35B for unpaid LBTT following the recovery of relief.
The notice requires the recipient to pay the outstanding amount of tax that remains unpaid.
The person who receives the notice has 30 days from the date of receipt to make the required payment.
This provision acts as a supplementary enforcement mechanism, supporting the wider framework for recovering relief that has been withdrawn.

Access full legislation.And much more.

By becoming a member, your team gets full access to Tax World research tools and source-backed tax resources.

Become a member