Land and Buildings Transaction Tax (Scotland) Act 2013 section 26

Amount of tax chargeable: linked transactions

Section 26 sets out how to calculate the amount of LBTT chargeable on a transaction that is one of a number of linked transactions.

• When transactions are linked, the tax is calculated on the total consideration for all linked transactions combined, not on each transaction individually.
• A four-step process is used: first calculate the total tax on the combined consideration using the relevant tax bands and rates, then apportion the total tax to each individual transaction based on its share of the overall consideration.
• Special rules apply where the chargeable consideration includes rent (as the transaction will involve a lease), and the calculation is modified by the provisions in schedule 19.
• The calculation is also subject to modifications for the Additional Dwelling Supplement, multiple dwellings relief, crofting community right to buy relief, and acquisition relief.

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