What transactions are excluded from linked transaction rules under Schedule 5 paragraph 6 of the LBTT Act 2013?

Transactions qualifying for crofting community right to buy relief (Schedule 9), group relief (Schedule 10), reconstruction or acquisition relief (Schedule 11), or charities relief (Schedule 13) are excluded from the linked transaction rules. This exclusion applies whether the relief is currently available or has subsequently been withdrawn by Revenue Scotland.

Does withdrawal of relief cause a transaction to become linked again under LBTT rules?

No. Under paragraph 6, even if a relief such as group relief, reconstruction relief, or charities relief is later clawed back because conditions were not maintained, the transaction remains excluded from the linked transactions rules. Withdrawal of relief does not cause the transaction to re-enter the linked transaction calculation for LBTT purposes.

Why does excluding transactions from linked transaction rules matter for LBTT calculations?

When transactions are linked, their consideration amounts are aggregated to determine the applicable LBTT rate, which can result in a higher tax charge. By excluding certain relieved transactions from linking, paragraph 6 ensures that the remaining transactions are assessed on their own consideration, potentially reducing the overall LBTT liability.

How does the exclusion work in practice when a charity acquires multiple properties?

If a charity acquires multiple properties from the same seller and some qualify for charities relief under Schedule 13, those relieved transactions are excluded from linking. The non-relieved property's LBTT is calculated solely on its own consideration, not the aggregate. This remains the case even if charities relief is later withdrawn from a relieved transaction.

Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 5 paragraph 6

Exclusion of certain transactions from linked transaction rules

Schedule 5 paragraph 6 identifies which transactions are excluded from the linked transactions provisions where specific tax reliefs apply or have been withdrawn.

A transaction is excluded if relief under Schedule 9 (crofting community right to buy) is available for it.
A transaction is also excluded if relief under Schedule 10 (group relief), Schedule 11 (reconstruction relief and acquisition relief), or Schedule 13 (charities relief) is available for it.
The exclusion also applies where any of those group, reconstruction, acquisition, or charities reliefs has been withdrawn from the transaction.
The effect is that these transactions are carved out from the linked transactions rules regardless of whether the relevant relief currently applies or has subsequently been clawed back.

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