Land and Buildings Transaction Tax (Scotland) Act 2013 section 41

Application to defer payment in case of contingent or uncertain consideration

Section 41 allows buyers to apply to Revenue Scotland to defer payment of LBTT where the consideration for a land transaction is contingent or uncertain at the time of the transaction.

• Where the tax payable depends on consideration that is contingent or uncertain at the effective date, and at least some of that consideration is due more than six months after the effective date, the buyer may apply to Revenue Scotland to defer payment of the relevant tax.
• A deferral application does not affect the buyer's obligation to pay tax on consideration that has already been paid or provided, or on consideration that is neither contingent nor uncertain and whose amount is known or ascertainable at the time of the application.
• This restriction on deferral applies to both the timing of payment and the calculation of the amount payable — in other words, tax on the known, non-contingent portion must still be paid on time and in the correct amount.
• The deferral provision does not apply to consideration that consists of rent, unless the Scottish Ministers make an order providing otherwise.