Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 17 paragraph 21

Chargeable consideration for land transfers from a partnership

Paragraph 21 of Schedule 17 sets out how to calculate the chargeable consideration when land is transferred out of a partnership.

• When land is transferred from a partnership, the chargeable consideration is calculated using a specific formula based on market value and the sum of the lower proportions.
• The formula is: Market Value × (100% minus the Sum of the Lower Proportions), with the sum of the lower proportions determined under paragraph 22.
• This calculation does not apply where the chargeable consideration for the transaction consists wholly or partly of rent — in that case, separate rules for leases under paragraph 29 apply instead.
• The result of the formula may also be subject to adjustment under paragraph 28, which can override the outcome in certain circumstances.