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

Shared ownership arrangements with a financial institution

Schedule 7 paragraph 7 sets out the conditions under which the alternative property finance relief rules in paragraphs 8 to 12 apply, specifically where a person and a financial institution jointly purchase land under a shared ownership arrangement.

• The relief applies where a financial institution and an individual jointly purchase a major interest in land as common owners (the first transaction).
• The parties must also enter into an agreement giving the individual the exclusive right to occupy the land (the second transaction).
• There must be a further agreement allowing the individual to require the institution to transfer its share of the property to them, either in a single transaction or through a series of transactions.
• All three elements — joint purchase, exclusive occupation agreement, and transfer right — must be present for the relief provisions in paragraphs 8 to 12 to apply.

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