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

Condition A: the initial transfer arrangement

Paragraph 8 of Schedule 8 sets out Condition A, which describes the basic arrangement where one person transfers a qualifying interest in land to another, with an agreement that the interest will be transferred back.

• Condition A requires two parties — referred to as P and Q — to enter into a formal arrangement with each other.
• Under the arrangement, P transfers a qualifying interest in land to Q — this is known as "the first transaction."
• P and Q must also agree that Q will transfer the interest in land back to P at a later date, specifically when Q ceases to hold the interest in the manner required by a further condition (Condition B).
• This structure reflects a financing arrangement where land is temporarily transferred and then returned, rather than a conventional sale.