Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 7 paragraph 8

Exemption for the first transaction in shared ownership arrangements with a financial institution

Paragraph 8 of Schedule 7 sets out when the first transaction in a shared ownership alternative finance arrangement is exempt from LBTT charge, based on the identity of the seller.

• This paragraph applies to shared ownership arrangements where land is sold to a financial institution and a person jointly.
• The first transaction in such an arrangement is exempt from LBTT if the seller is the individual person involved in the arrangement.
• The exemption also applies if the seller is another financial institution that previously acquired the interest under a similar type of shared ownership arrangement with the same person.
• This ensures that transfers within these alternative finance structures do not attract an LBTT charge, supporting Sharia-compliant and other alternative property finance models.

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