Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 4 paragraph 6

Where qualifying conditions (a) to (e) but not (f) are met

Paragraph 6 of Schedule 4 explains how to calculate the chargeable consideration when a transaction meets most of the qualifying conditions but the garden or grounds exceed the permitted area.

• This rule applies where qualifying conditions (a) to (e) are satisfied but condition (f) — relating to the permitted area limit — is not met.
• When the garden or grounds exceed the permitted area, only a partial relief is available rather than full relief.
• The chargeable consideration is calculated by deducting the market value of the permitted area from the market value of the old dwelling as a whole.
• The effect is that the buyer is charged LBTT only on the value attributable to the excess land beyond the permitted area.