Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 18 paragraph 8

Bare trustees as buyers in lease transactions

Schedule 18 paragraph 8 deals with how a bare trustee is treated for LBTT purposes when a lease is granted to them.

• When a lease is granted to a bare trustee, that person is treated as the buyer of the lease for LBTT purposes.
• The bare trustee is regarded as acquiring the whole of the interest in the lease, not just a partial or nominal interest.
• This treatment applies specifically to the grant of a lease, ensuring LBTT obligations fall on the bare trustee as the named tenant.
• The effect is that the bare trustee, rather than the beneficiary behind the trust, is the person responsible for LBTT compliance in relation to the lease.