Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 4 paragraph 12

Exception to the occupation restriction for short-term leases or licences

Paragraph 12 of Schedule 4 provides an exception to one of the qualifying conditions for the property trader relief where a chain of transactions breaks down, specifically allowing a short-term lease or licence to be granted to the original individual seller.

• This paragraph relates to the property trader relief available when a chain of property transactions breaks down.
• One of the qualifying conditions (set out in paragraph 11(g)(ii)) normally prevents the property trader from granting certain rights back to the individual seller after acquiring the property.
• Paragraph 12 creates an exception: the property trader may grant a lease or licence to the individual for a short period without losing entitlement to the relief.
• The lease or licence must be for a period of no more than six months to fall within this exception.