Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 11 paragraph 6

Reduced tax on transfer of undertakings

Schedule 11 paragraph 6 provides for a reduced rate of LBTT where a land transaction takes place as part of the transfer of a business (or part of a business), provided certain qualifying conditions are met.

• This provision applies where a land transaction is carried out for the purposes of, or in connection with, transferring an undertaking or part of an undertaking.
• The qualifying conditions (set out elsewhere in Schedule 11) must be met for the relief to apply.
• Where the provision applies, the LBTT charged is reduced to a prescribed proportion of the tax that would otherwise be due.
• The prescribed proportion is set by the Scottish Ministers through a statutory order, giving them flexibility to adjust the level of relief.