Land and Buildings Transaction Tax (Scotland) Act 2013 section 10

Partial sub-sales and apportioning chargeable consideration

Section 10 explains how to calculate the chargeable consideration for the first land transaction when the qualifying sub-sale covers only part of the property originally contracted for.

• Where a qualifying sub-sale relates to only part of the property in the first contract, the chargeable consideration for the first transaction must be reduced
• The reduction is the portion of the original chargeable consideration that is fairly attributable to the part of the property being sub-sold
• The apportionment of the consideration between the sub-sold part and the retained part must be made on a just and reasonable basis
• The buyer under the first contract remains liable to LBTT on the consideration attributable to the part of the property they retain