The following Tax guidance note provides comprehensive and up to date legal information covering:
FORTHCOMING CHANGE in relation to rates of LBTT on NPV of rent: At Scottish Budget 2020, the Scottish government introduced a 2% rate of LBTT to apply where the NPV of rent is in excess of £2,000,000. Subject to the provisional affirmative procedure, this rate applies to leases with an effective date from 7 Feb 2020, but with transitional provisions for agreements for lease or missives of let in place before 6 Feb. The 2% rate will not generally apply to leases already in place (such as on the 3 year lease review or assignation of a lease). For more detail, see: Tax weekly highlights—6 February 2020—Devolution.
Produced in partnership with David Small of Arnot Manderson Advocates and Ronnie Brown of Burness Paull LLP
The amount of land and buildings transaction tax (LBTT) that is due on a land transaction is calculated by applying the appropriate rate or rates of tax (including a nil rate) to the amount of the chargeable consideration. Where apparently separate transactions are linked by the legislation, the LBTT due has to be calculated as if there were only one transaction.
This Practice Note explains the meaning of chargeable consideration and linked transactions and summarises the applicable rates and bands of LBTT and, where relevant, comparisons between LBTT and stamp duty land tax
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