Land and Buildings Transaction Tax (Scotland) Act 2013 section 7

Use of land in a qualifying manner [Schedule 16D paragraph 7]

Section 7 defines what it means for land acquired within a green freeport tax site to be "used in a qualifying manner" — a key condition for obtaining green freeport relief from Land and Buildings Transaction Tax.

• Land is used in a qualifying manner if the buyer (or a connected person) uses it for a commercial trade or profession, develops it for such use, or exploits it as a source of rental or other income — but not if the income comes from certain excluded categories of rent.
• Land is not used in a qualifying manner to the extent it is used as a dwelling or its garden or grounds, developed into residential property, rented to someone using it as a dwelling, or simply held as trading stock for resale without any development.
• Qualifying use extends to land used for purposes ancillary to other land within the green freeport tax site, provided that other land is itself being used or developed for a commercial trade or profession.
• A "commercial" trade or profession means one carried on with a view to profit and on a commercial basis; property rental businesses also count as qualifying commercial activity for these purposes.

---