Land and Buildings Transaction Tax (Scotland) Act 2013 section 6

Acquisition and disposal of chargeable interest

Section 6 defines what counts as an acquisition or disposal of a chargeable interest for LBTT purposes, covering the creation, renunciation, release, and variation of such interests.

• Creating a chargeable interest, renouncing or releasing it, or varying it (other than varying a lease) each counts as both an acquisition and a disposal for LBTT purposes.
• The variation of a lease is only treated as an acquisition and disposal in specific circumstances, namely where there is a reduction of rent, a reduction of the lease term, or certain other lease variations as set out in the Act.
• The person who acquires a chargeable interest is the one who becomes entitled to it on creation, whose interest is benefitted or enlarged by a renunciation or release, or who benefits from a variation; conversely, the person who disposes is the one whose interest becomes subject to, limited by, or extinguished through these events.
• The LBTT rules apply regardless of how the acquisition comes about — whether through agreement between the parties, a court order, statutory provision, or operation of law.

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