Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 10 paragraph 19

Definition of "appropriate proportion"

Schedule 10, paragraph 19 defines what is meant by an "appropriate proportion" when determining how much of a property interest counts for the purposes of the charities relief provisions.

• An "appropriate proportion" is not a fixed percentage — it is determined by reference to the specific circumstances of each transaction.
• The first factor to consider is the subject matter of the relevant transaction — that is, what property or interest in land is actually being acquired.
• The second factor is what is held at the relevant time by the buyer, or by the buyer together with its relevant associated companies.
• This definition is important because it governs how partial relief is calculated where only part of a transaction qualifies for charities relief.