Following recent consultations, the Scottish government has published two draft orders, which will introduce the increased land and buildings transaction tax (LBTT) threshold for first-time buyers in Scotland, and extend the availability of LBTT group relief.
The draft Land and Buildings Transaction Tax (First-Time Buyer Relief) (Scotland) Order 2018 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. Following the consultation on a first draft during February and March, revisions made to this version include an amended definition of ‘major interest’ in relation to properties held in trust and an exception in relation to certain linked transactions.
The draft Land and Buildings Transaction Tax (Group Relief Modification) (Scotland) Order 2018 confirms, 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.
Following recent consultations, the Scottish government has published two draft orders, which will introduce the increased land and buildings transaction tax (LBTT) threshold for first-time buyers in Scotland, and extend the availability of LBTT group relief.
The draft Land and Buildings Transaction Tax (First-Time Buyer Relief) (Scotland) Order 2018 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. Following the consultation on a first draft during February and March, revisions made to this version include an amended definition of ‘major interest’ in relation to properties held in trust and an exception in relation to certain linked transactions.
The draft Land and Buildings Transaction Tax (Group Relief Modification) (Scotland) Order 2018 confirms, 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.
