Land and Buildings Transaction Tax (Scotland) Act 2013 section 63

Meaning of "effective date" of a transaction

Section 63 defines the "effective date" of a land transaction for LBTT purposes, which is the key date that triggers the obligation to notify and pay the tax.

• The effective date of a land transaction is generally the date of completion, i.e. when the transaction is finalised and the property is conveyed.
• Scottish Ministers have the power to prescribe an alternative effective date by regulations, replacing the default completion date.
• Several other provisions in the Act set different effective dates for specific situations, such as where a contract is substantially performed before formal completion takes place.
• Special rules also apply to options, rights of pre-emption, contracts directing conveyance to a third party, and agreements for lease that are substantially performed before the lease is formally granted.