Land and Buildings Transaction Tax (Scotland) Act 2013 section 9

Exemption where sub-sale covers the whole of the first contract

Section 9 of Schedule 10A provides that where a qualifying sub-sale relates to the entire subject-matter of the original (first) contract, the land transaction arising from that first contract is exempt from LBTT.

• This paragraph applies where the qualifying sub-sale covers the whole of the property in the first contract, not just part of it.
• When this condition is met, the land transaction that would otherwise arise on completion of the first contract is exempt from LBTT.
• The exemption also applies where the first contract is substantially performed rather than formally completed.
• The effect is that the original buyer (the intermediary) does not incur an LBTT charge on the first contract, avoiding double taxation on the same property.