Land and Buildings Transaction Tax (Scotland) Act 2013 section Sch 17 para 32

Transfer of interests in property-investment partnerships

Schedule 17 paragraph 32 sets out how LBTT applies when someone acquires or increases an interest in a property-investment partnership that holds chargeable interests (typically land and buildings in Scotland).

• When a person acquires or increases a partnership share in a property-investment partnership holding land or buildings, the transfer is treated as a chargeable land transaction for LBTT purposes.
• The taxable consideration is based on the proportion of the market value of the partnership's relevant property that corresponds to the partnership share acquired or increased.
• The rules distinguish between Type A transfers (where consideration is paid or money withdrawn) and Type B transfers (all other cases), with Type B transfers benefiting from additional exclusions when identifying relevant partnership property.
• Certain property is excluded from the calculation, including leases at market rent, property transferred to the partnership as part of the same arrangement, and property not economically attributable to the interest being transferred.

---