Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 2 paragraph 4

Apportionment of consideration

Schedule 2 paragraph 4 sets out how consideration must be apportioned when it relates to more than one land transaction or to a mixture of chargeable and non-chargeable matters.

• Where consideration covers two or more land transactions, or partly relates to a land transaction and partly to something else, it must be split on a just and reasonable basis.
• If the parties fail to apportion the consideration themselves, LBTT legislation treats it as though a just and reasonable apportionment has been made automatically.
• Where a single bargain exists in substance, the total consideration is treated as attributable to all elements of that bargain, regardless of how it has been presented or documented.
• Artificial separation of consideration or transactions for different elements of what is really one deal will not prevent the rules from applying to the bargain as a whole.