Land and Buildings Transaction Tax (Scotland) Act 2013 section Sch 16D para 4

Attributing chargeable consideration to land

Section Sch 16D para 4 explains how to apportion chargeable consideration between qualifying green freeport land and other land within a transaction, including de minimis thresholds that simplify the calculation at the upper and lower ends.

• The chargeable consideration attributable to qualifying green freeport land must be determined on a just and reasonable basis.
• Where at least 90% of the consideration for land in a green freeport tax site relates to qualifying land, the entire freeport consideration is treated as attributable to qualifying green freeport land.
• Where less than 10% of the consideration for land in a green freeport tax site relates to qualifying land, none of the freeport consideration is treated as attributable to qualifying green freeport land.
• These thresholds act as practical simplifications, avoiding the need for precise apportionment where almost all, or almost none, of the land qualifies.