Land and Buildings Transaction Tax (Scotland) Act 2013 section 13

Exchanges

Section 13 deals with how LBTT applies when two parties exchange land or buildings with each other, rather than simply buying and selling for cash.

• When two parties swap land or buildings, each side of the exchange is treated as a separate and distinct land transaction for LBTT purposes.
• The two sides of an exchange are not treated as linked transactions, meaning each is assessed independently for tax.
• An exchange includes any situation where a buyer's obligation to pay consideration is met, wholly or partly, by that person entering into another transaction as a seller.
• Special rules in Schedule 2 of the Act determine how the chargeable consideration is calculated for exchanges, partitions and arrangements involving public or educational bodies.