Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 2 paragraph 5

Exchanges of land and property

Section Schedule 2 paragraph 5 sets out how to determine the chargeable consideration for LBTT purposes when land transactions involve an exchange — that is, where a person buys property and the consideration for that purchase consists wholly or partly of them selling another property to the other party.

• Where an exchange involves a major interest in land (such as ownership or a lease), the chargeable consideration for each acquisition is the higher of the market value of what is being acquired or the consideration that would otherwise apply
• If the acquisition is the grant of a lease, the rent is used instead of market value for the comparison
• Where none of the properties involved is a major interest in land, the chargeable consideration is only any additional money or other non-property consideration passing between the parties, apportioned by market value if there are multiple acquisitions
• Special rules override this paragraph for transactions involving partition of jointly held land and for arrangements involving public or educational bodies