What conditions must be met for a transaction to fall within Schedule 5 paragraph 5 of the LBTT Act 2013?

Three conditions must all be satisfied: the transaction must involve the purchase of an interest in a single dwelling (alone or with other property), it must be one of a number of linked transactions between the same or connected parties, and at least one other linked transaction must also involve an interest in one or more different dwellings.

What are linked transactions for the purposes of LBTT Schedule 5 paragraph 5?

Linked transactions are those forming part of a single scheme, arrangement, or series of transactions between the same buyer and seller or persons connected with them. This established LBTT concept is significant because linked transactions can affect how the tax is calculated across multiple dwelling purchases.

Can a transaction qualify under paragraph 5 if the dwelling is purchased together with other property?

Yes. The first condition is met if the main subject matter includes an interest in a single dwelling, whether purchased on its own or together with other property. For example, a house bought with an adjoining piece of agricultural land can still satisfy the condition for paragraph 5 eligibility.

What is a practical example of transactions falling within Schedule 5 paragraph 5?

A property investor buying three flats from the same seller as part of a single negotiated deal, each under a separate contract, would qualify. Each contract involves a single dwelling, all are linked as part of the same arrangement, and each other contract involves a different dwelling, satisfying all three conditions.

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

Linked transactions involving multiple dwellings

Schedule 5 paragraph 5 sets out the conditions that must be met for a transaction to qualify as one involving linked purchases of multiple dwellings.

The transaction must involve the purchase of an interest in a single dwelling, either on its own or together with other property.
The transaction must be one of a number of linked transactions (i.e. transactions between the same buyer and seller or connected parties that form part of a single arrangement).
At least one of the other linked transactions must also involve the purchase of an interest in one or more different dwellings, again either on their own or with other property.
All three conditions must be satisfied for the transaction to fall within this paragraph, which is relevant to the application of the multiple dwellings relief rules in Schedule 5.

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