Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 5 paragraph 19

Where relief is partially withdrawn, tax is chargeable on the transaction as if the event had occurred immediately before the effective date of the transaction

Schedule 5 paragraph 19 explains how tax is calculated when a previously granted relief is only partially withdrawn.

• When a relief from LBTT is partially withdrawn, the transaction becomes partly chargeable to tax.
• The tax charge is calculated as though the event triggering the partial withdrawal had taken place immediately before the effective date of the original transaction.
• This means the tax rates and thresholds applicable at the time of the original transaction are used, rather than those in force when the disqualifying event actually occurred.
• The effect is to recalculate the original liability as if the relief had only partly applied from the outset.