Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 4 paragraph 8

Exception to the resale restriction for short-term leases or licences

Paragraph 8 of Schedule 4 provides a limited exception to one of the qualifying conditions for property trader relief, allowing a short-term lease or licence to be granted back to the individual seller without disqualifying the claim for relief.

• This paragraph creates an exception to the qualifying condition in paragraph 7(e)(ii) of Schedule 4.
• Paragraph 7(e)(ii) normally requires that the property trader must not grant a lease or licence over the old dwelling back to the individual from whom it was purchased.
• The exception permits the property trader to grant a short-term lease or licence to the individual, provided it is for a period of no more than six months.
• This recognises practical situations where the individual may need temporary occupation of their old home after selling it to the property trader, for example while awaiting completion of their move to a new dwelling.