Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 18 paragraph 7

Grant of a lease: exclusion from bare trust rules

Schedule 18, paragraph 7 provides that the bare trust acquisition rules in paragraphs 5 and 6 do not apply where the transaction is the grant of a lease.

• Paragraphs 5 and 6 set out how LBTT treats acquisitions of chargeable interests by bare trustees, treating the beneficiary as the buyer rather than the trustee
• Paragraph 7 creates a specific exclusion from those bare trust rules for the grant of a lease
• Where a lease is granted, the normal bare trust treatment of looking through to the beneficiary does not apply
• This means that for lease grants, the standard LBTT rules apply rather than the special bare trust provisions