Land and Buildings Transaction Tax (Scotland) Act 2013 section 35J

A payment in pursuance of a notice under paragraph 35E

Section 35J confirms that payments made to Revenue Scotland following recovery of reconstruction or acquisition relief cannot be treated as a tax-deductible expense.

• When reconstruction or acquisition relief is clawed back by Revenue Scotland, a payment notice is issued under the recovery provisions
• Any amount paid in response to such a recovery notice cannot be deducted as an expense for any tax purpose
• This applies regardless of the type of tax — it covers income tax, corporation tax, and any other tax where deductions might otherwise be claimed
• The effect is that the full cost of the recovered relief falls on the taxpayer without any offsetting tax benefit