Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 1 paragraph 6

Property acquired under a will or intestacy

Section 6 of Schedule 1 deals with the exemption from LBTT for property acquired by a beneficiary under a will or on intestacy, and explains when that exemption is lost.

• Property inherited under a will or through intestacy is normally exempt from LBTT.
• The exemption is lost if the person acquiring the property provides any consideration other than taking on debt that was already secured against the property at the date of death.
• Where the exemption is lost because consideration has been given, the chargeable consideration is calculated under special rules rather than at full market value.
• "Secured debt" is defined as any obligation to pay money — whether definite or contingent — that was secured on the property immediately after the deceased's death.