Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 17 paragraph 4

Acquisition of a partnership interest – general rule

Paragraph 4 of Schedule 17 establishes the general rule that acquiring an interest in a partnership is not a chargeable transaction for LBTT purposes, even where the partnership owns land, subject to three specific exceptions.

• Acquiring an interest in a partnership is generally exempt from LBTT, even if the partnership holds land or buildings.
• An exception applies where a chargeable interest (such as land) is transferred into a partnership (Part 4 of Schedule 17).
• A further exception applies where a partnership interest is transferred as part of earlier arrangements (paragraph 17 of Schedule 17).
• A third exception applies to transfers of interests in property-investment partnerships (paragraph 32 of Schedule 17).