Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 13 paragraph 5

Disqualifying events

Schedule 13 paragraph 5 defines what constitutes a "disqualifying event" that would cause a charity to lose its LBTT relief.

• A disqualifying event occurs when a buyer ceases to be established for charitable purposes only.
• It also occurs when the property acquired, or any interest or right derived from it, is held or used by the buyer for purposes other than qualifying charitable purposes.
• If a disqualifying event takes place, the charity relief previously claimed on the land transaction may be withdrawn.
• Both conditions focus on ensuring that the charity maintains its charitable status and uses the property for genuine charitable purposes after the transaction.