Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 4 paragraph 5

Exemption for property traders acquiring dwellings from individuals

Schedule 4 paragraph 5 establishes that when a property trader buys a dwelling from an individual (or a group of individuals), the purchase is exempt from the additional dwelling supplement charge, provided certain qualifying conditions are satisfied.

• The exemption applies when a property trader acquires a dwelling (referred to as "the old dwelling") from an individual or individuals.
• A property trader is the purchaser in this type of transaction, and the seller must be an individual (not a company or other entity).
• The acquisition is exempt from the additional dwelling supplement charge, meaning the higher rate of LBTT does not apply.
• The exemption is conditional — it only applies if all the relevant qualifying conditions set out elsewhere in Schedule 4 are met.