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Land and buildings transaction tax

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Two orders are now in force, increasing the land and buildings transaction tax (LBTT) threshold for first-time buyers in Scotland and allowing group relief where companies transfer ownership of property within a group using shares as financial security.

  • The Land and Buildings Transaction Tax (First-Time Buyer Relief) (Scotland) Order, SSI 2018/221, raises the LBTT threshold for first-time buyers in Scotland to £175,000 for transactions with an effective date on or after 30 June 2018, where the contract was entered into on or after 9 February.
  • The Land and Buildings Transaction Tax (Group Relief Modification) (Scotland) Order, SSI 2018/222, provides with effect from 30 June 2018 that the existence of a relevant ‘share pledge’ or similar mortgage arrangement will not prevent LBTT group relief being available for land transactions within a corporate group structure, so long as the rights to call in such arrangements are not exercised. The Scottish finance secretary has said the government intends to introduce further legislation in due course, making this change retrospective to the introduction of LBTT in 2015.
Issue: 1406
Categories: News , Stamp taxes