Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 19 paragraph 8

Chargeable consideration other than rent

Schedule 19 paragraph 8 explains how non-rent consideration in a lease transaction is treated for LBTT purposes, and how rent is excluded when calculating tax on linked transactions.

• Where a lease involves chargeable consideration other than rent (such as a premium or lump sum payment), the normal LBTT rules for chargeable consideration apply to that non-rent element.
• The tax on non-rent consideration is calculated separately from the tax on rent, using the standard LBTT provisions.
• A special rule applies to the nil rate tax band for non-rent consideration in lease transactions, as set out in paragraph 9 of Schedule 19.
• When a lease forms part of a group of linked transactions, only the non-rent consideration is aggregated with consideration from the other linked transactions — rent is excluded from the linked transaction calculation.