Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 5 paragraph 7

Splitting the consideration between dwellings and remaining property

Paragraph 7 of Schedule 5 explains how the total chargeable consideration in a relevant transaction is divided between the portion relating to dwellings and the portion relating to the remaining (non-dwelling) property.

• In a relevant transaction, the total chargeable consideration must be split into two parts: a dwellings element and a remaining property element.
• The consideration attributable to dwellings is whatever share of the total chargeable consideration can properly be attributed to the dwelling or dwellings included in the transaction.
• The consideration attributable to the remaining property is simply the total chargeable consideration minus the amount attributed to the dwellings.
• This apportionment is necessary because different LBTT rates and bands may apply to the residential (dwelling) and non-residential (remaining property) components of a single transaction.