Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 2 paragraph 6

Partition or division of jointly held interests

Schedule 2 paragraph 6 deals with how LBTT applies when jointly held land or property is partitioned or divided among the joint owners.

• This provision applies when land or property held jointly by two or more persons is being formally divided or partitioned among them.
• When such a division takes place, each person receiving their portion is treated as a buyer for LBTT purposes.
• However, the share that the buyer already held in the property immediately before the partition does not count as chargeable consideration for LBTT.
• In effect, LBTT is only charged on any additional value the buyer receives beyond their original share in the jointly held interest.