Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 19 paragraph 1

Introduction to Schedule 19: leases

Schedule 19 paragraph 1 introduces the schedule that governs how LBTT applies to lease transactions, and sets out how the schedule is organised.

• Schedule 19 contains all the special rules for how LBTT applies to leases, as distinct from outright purchases of land and buildings.
• The schedule covers how tax is calculated on the rent element of a lease and on any other chargeable consideration (such as a premium).
• It requires periodic reviews of the tax due over the life of a lease and on certain events, meaning LBTT on leases is not simply a one-off calculation at the outset.
• It also sets out rules on what counts as chargeable consideration in a lease context and how the duration of a lease is determined for LBTT purposes.