Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 2 paragraph 8

Debt as chargeable consideration

Section Schedule 2 paragraph 8 explains how debts that are satisfied, released, or assumed as part of a land transaction are treated as chargeable consideration for LBTT purposes.

• Where a land transaction involves the satisfaction, release, or assumption of debt, the amount of that debt counts as chargeable consideration for LBTT purposes.
• If a debt is secured on the property both before and after the transaction, and any party's rights or liabilities regarding that debt change as a result, the buyer is treated as having assumed the debt, creating chargeable consideration.
• Where property is held in undivided shares by two or more persons, the amount of secured debt assumed is apportioned according to each person's share of the property.
• The chargeable consideration arising from debt cannot exceed the market value of the property being transferred.