Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 1, paragraph 4

Transfers of property between spouses on marriage breakdown

Schedule 1, paragraph 4 provides that transfers of land or buildings between married parties are exempt from LBTT when the transfer arises from the breakdown of their marriage.

• Transfers of property between spouses are exempt from LBTT when made as a result of a court order for divorce, annulment, or judicial separation.
• The exemption also covers transfers made under a court order issued at any time after the divorce, annulment, or judicial separation has been granted.
• Transfers made under specific court orders relating to financial settlements on divorce — including property adjustment orders under the Matrimonial Causes Act 1973 or incidental orders under the Family Law (Scotland) Act 1985 — are also exempt.
• The exemption extends to transfers made under a private agreement between the spouses, provided the agreement was made in contemplation of or in connection with their divorce, annulment, judicial separation, or separation order.