Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 13 para 4

Withdrawal of charities relief

Schedule 13, paragraph 4 sets out the circumstances in which charities relief from LBTT is withdrawn, either in full or in part, following a disqualifying event.

• Charities relief can be withdrawn fully or partially if a disqualifying event occurs within 3 years of the effective date of the original relieved transaction
• Relief is also withdrawn if the disqualifying event occurs under arrangements made within that 3-year window, even if the event itself falls later
• Withdrawal only applies where, at the time of the disqualifying event, the buyer still holds the chargeable interest acquired in the original transaction or an interest derived from it
• Both conditions — a timely disqualifying event and continued holding of the relevant interest — must be met for withdrawal to take effect