Purpose of this guidance

This guidance will help agents and tenants make a paper Land and Buildings Transaction Tax (LBTT) lease review return. Separate guidance is available on ‘How to pay LBTT’, including rules regarding payment by cheque (the only payment method accepted for a paper LBTT return).

This is not guidance about the tax itself. LBTT legislation guidance for taxpayers and agents is available separately on our website. Where we refer to further guidance, for example ‘see LBTT1001’, we mean references to that guidance.

It is the tenant’s responsibility to ensure the LBTT return is complete and accurate. If you are unsure about any matter relating to the LBTT return you should seek professional advice.

Where an agent is completing and submitting this on behalf of the taxpayer, you must certify, as part of the declaration on the final page, that the tenant(s) have declared that the return is correct and complete, and that the relevant date entered is correct.

The paper LBTT lease review return can be downloaded from our website. If you are unable to download the paper return, please telephone us or write to us at the details provided on our contacts page

All references in this guidance to:

  • LBTT(S)A 2013 means The Land and Buildings Transaction Tax (Scotland) Act 2013 (as amended);
  • ‘tenant’ means the buyer as defined in section 7 of the LBTT(S)A 2013
  • ‘landlord’ means the seller as defined in section 7 of the LBTT(S)A 2013
  • ‘we’, ‘us’ or ‘our’ means Revenue Scotland; and
  • ‘you’ means the person making the LBTT return (either as the tenant or the tenant’s agent).
  • ‘original return/transaction’ means the first LBTT return submitted when the lease was granted, or when it became notifiable for the first time.

Protection of information

We will protect and handle any information that you provide us with in your tax return with care. For further information please see our Privacy Policy and guidance on taxpayer information (Chapter 9 of The Revenue Scotland and Tax Powers Act 2014 legislation guidance).

General guidance about the paper LBTT lease review return

Introduction to submitting a paper LBTT lease review return.

Key information you will need to complete this return

To complete this return, you will need the following information:

  • The lease agreement, showing information such as the start and end dates of the lease;
  • Transaction reference of the LBTT return original LBTT return submitted for the lease;
  • Effective date of the LBTT return original LBTT return submitted for the lease;
  • A recalculation of the total LBTT payable on the lease. Please consult our guidance on how to calculate tax on a lease review before using the LBTT on Lease Transactions Calculator;
  • How much LBTT has already been paid on the lease.

Rules on completing the paper LBTT return

When completing the paper LBTT lease review return you must follow the rules below:

  • there are several mandatory fields in each section of the LBTT lease review return – these are clearly identified in this guidance. Some fields become mandatory or cease to be mandatory depending on whether or not other fields are answered. A return will not be valid unless you have completed all mandatory fields;
  • use black ink throughout;
  • write clearly in BLOCK CAPITALS - if we cannot read any part of your form it may be returned to you. If the return is incomplete or illegible and cannot be processed it will be returned for correction. In such cases, interest and penalties may be incurred if the corrected return is filed late;
  • if you make a mistake on the return, do not use correction fluid. Cross through the error and rewrite as necessary;
  • if a question does not apply to you, leave the answer field blank – do not enter ‘N/A’ for example;
  • where required insert ‘X’ clearly into the relevant answer box(es) - do not tick the box;
  • in date boxes enter the date as follows: DD/MM/YYYY e.g. 03/10/2015;
  • all monetary entries should be in pounds sterling - do not enter the £ symbol;
  • the final amount entered in the ‘Amount due for this return’ field in the ‘About the Calculation’ section should be rounded down to the nearest pound – ignore the pence;
  • if you require additional space for further tenants or properties then please complete an ‘Additional Details’ form;
  • if you are submitting a lease review return upon assignation of a lease, please complete an ‘Additional Details Upon Assignation’ form.

Downloading the paper LBTT lease review return and supplementary form

You can download the paper LBTT lease review return, the ‘LBTT Return Additional Details’ form and ‘Additional Details Upon Assignation’ form from the forms sections on our website. 

Amending a paper LBTT lease review return once it has been submitted

Once an LBTT lease review return has been made to us, subject to a small number of exceptions you can amend any details in the return up to 12 months after the filing date (see LBTT1000). No amendment to a LBTT return can be made after this date.

Further information on how to amend an LBTT lease review return can be found at the end of this guidance

Voiding a paper LBTT lease review return once it has been submitted

If you think that a paper LBTT lease review return is no longer valid after it has been made to us (for example, you might have mistakenly confused some of the details of one transaction for another) then it may be possible to void it and make a new return – you must contact us via the details on our website if you wish to discuss this further.

About the Transaction

Transaction reference of the original return

You must answer this question.

Enter the transaction reference of the LBTT return that was originally submitted for this lease. This should be entered in the following format - ‘RSXXXXXXX’.

Is this return for a Three-yearly review, Assignation or Termination

You must answer this question.

Select the event upon which this return is being completed (see LBTT6014 and LBTT6017).

Effective date of original transaction

You must answer this question.

Enter in ‘DD/MM/YYYY’ format the effective date of the original transaction, as stated in the LBTT return that was originally submitted for this lease.

Except where the original LBTT return was submitted under any of the following provisions:

In these cases, the ‘Relevant Date’ of the originally submitted LBTT return should be entered instead of the ‘Effective Date’.

Relevant Date

You must answer this question.

Enter in ‘DD/MM/YYYY’ format for the transaction (as defined under section 36(3) of the LBTT(S)A 2013). The ‘relevant date’ in relation to each of the three different provisions under which a LBTT lease review return is required is:

About the Tenant

This section is divided into three sub-sections:

Questions for the ‘Private Individuals and Representatives’ sub-section

Questions for the ‘Incorporated Bodies’ sub-section

Questions for the ‘Agent Details’ sub-section

Note:

  • There is only space in the main paper LBTT lease review return to enter details of one ‘Private Individuals and Representatives’ tenant and one ‘Incorporated Bodies’ tenant;
  • If there is more than one tenant in either of these categories, enter the details of the first tenant on the main return and then add the details of any other tenants in the ‘Additional Details’ form which can be downloaded from our website;
  • Only complete the most relevant ‘About the Tenant - Private Individuals and Representatives’ or ‘About the Tenant - Incorporated Bodies’ sections of the return. For example, if the tenant is a private individual do not complete any details in ‘About the Tenant - Incorporated Bodies’. Where there is more than one tenant and at least one is a private individual/representative and at least one is an incorporated body, you must complete a combination of both the ‘About the Tenant - Private Individuals and Representatives’ and ‘About the Tenant - Incorporated Bodies’ sections.

Note: For the purposes of this return ‘Private Individuals and Representatives’ include partnerships and ‘Incorporated Bodies’ includes unincorporated associations, charities and unit trusts.

  • Questions for the 'Private Individuals and Representatives' sub-section

Title

Select the relevant title (if any) of the buyer from one of the following options:

Mr / Miss / Mrs / Ms / Dr / Other. 

Tenant surname

You must answer this question.

Enter the surname (family name) of the tenant.

Tenant first name(s)

Enter the first and middle name(s) (or non-family name) of the tenant.

Address

You must answer this question.

Enter the address of the tenant after the effective date of the land transaction, including the house (or office) name and number and postcode. You must also enter the name of the country to which the address relates. This is the address we will use if we need to correspond with the tenant involved in this transaction.

Telephone number

Enter a daytime telephone number that can be used to contact the tenant.

National Insurance number (Tenant 1), if you have one (this question is not displayed for additional tenants)

You must answer either the National Insurance Number (NINO) question or the following (non-UK tax reference) question.

Note: if you answer the NINO question, the answer field for the following (non-UK tax reference) question will be greyed out.

Answer this question if the tenant is an individual. Give the correct NINO for the tenant – we will not accept a temporary NINO.

If the tenant does not have a NINO then answer the question below.

If tenant (1) has no UK reference, give a tax reference from the country in which tenant (1) is based (this information is not required for additional tenants)

You must answer either this question or the previous (NINO) question.

Note: if you answer this (non-UK tax reference) question, the answer field for the previous (NINO) question will be greyed out.

If the tenant is based in the UK you should only answer this question if the tenant does not have a NINO.

If you are not able to give a non-UK tax reference for a non-UK based tenant or a NINO number for a UK-based tenant we will accept the following:

  • Passport Number;
  • Driving Licence Number; or
  • another recognised ID reference e.g. Child Benefit Number (if the tenant is aged under 16).

Country where ID was issued (this question is not displayed for additional tenants)

If you answered the (non-UK tax reference) previous question then you must answer this question.

Note: the answer field for this question will be greyed out until you have entered details for the previous (non-UK tax reference) question.

Enter the name of the country where the non-UK tax reference, Passport Number, Driving Licence Number or other recognised ID was issued.

Is the Tenant acting as a private individual?

You must answer this question.

Answer ‘Yes’ if the tenant is acting in an individual capacity and not acting on behalf of any group of individuals, for example a trust, partnership or a company.

Note: If you answer ‘No’, you must answer the ‘Is the Tenant acting as a trustee?’ and ‘Is the Tenant acting as representative partner?’ questions below.

Is the Tenant acting as a trustee?

You must answer this question if you answered ‘No’ to the ‘Is the Tenant acting as a private individual?’ question.

Answer ‘Yes’ if the tenant is acting as a trustee (see LBTT8001).

Are the Tenant(s) and Landlord(s) connected?

You must answer this question for all tenants.

Enter ‘Yes’ if the tenant and landlord are connected persons as defined under section 58 of the LBTT(S)A 2013. Connected persons include:

  • a spouse or civil partner;
  • relatives and their spouse or civil partner;
  • relatives of a spouse’s or civil partner’s relatives and their spouse or civil partner;
  • if the tenant or landlord are in business in a partnership, the business partners and their spouses or civil partners and their relatives;
  • a company that the tenant or landlord controls, either by themself or with any of the persons listed above; or
  • the trustees of a settlement of which the tenant or landlord is a settlor, or of which a person who is still alive and who is connected with them as a settlor.

A company is connected with another company:

  • if the same person has control of both companies, or a person has control of one and persons connected with him (or he and persons connected with him) have control of the other; or
  • if a group of two or more persons have control of each company, and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person with whom he is connected.

Note: For these purposes a company includes a body corporate or unincorporated association.

Is the Tenant acting as representative partner?

You must answer this question if you answered ‘No’ to the ‘Is the Tenant acting as a private individual?’ question.

Answer ‘Yes’ if the tenant is acting on behalf of a partnership, is the representative partner as defined in paragraph 9 of schedule 17 to the LBTT(S)A 2013 and notice of the nomination has been given to us (see LBTT7004).

Name of Partnership or Trust

If you have answered ‘Yes’ to either the ‘Is the Tenant acting as a trustee?’ or ‘Is the Tenant acting as representative partner?’ questions then enter the name of the relevant trust or partnership.

  • Questions for the 'Incorporated Bodies' sub-section

Legal Name

You must answer this question.

Enter the registered legal name of the tenant.

Trading Name (if different)

If the trading name of the tenant is different from the ‘Legal Name’, enter the trading name of the tenant.

Company Number

You must answer either this question or the following ‘Charity Number’ question. Do not answer both questions.

Enter the company registration number (CRN) if the company is registered at Companies House.

Enter the Local Authority number, or N/A for other public bodies.

Charity Number

You must answer either this question or the preceding ‘Company Number’ question.

Enter the charity number if the tenant is a registered charity.

Governing Law / Jurisdiction

Enter the name of the country where the company is registered.

Is the Tenant acting as a trustee?

You must answer this question if you answered ‘No’ to the ‘Is the Tenant acting as a private individual?’ question.

Answer ‘Yes’ if the tenant is acting as a trustee.

Are the Tenant(s) and Landlord(s) connected?

You must answer this question.

Enter ‘Yes’ if the tenant and landlord are connected persons as defined under section 58 of the LBTT(S)A 2013.

A company is connected with another company:

  • if the same person has control of both, or a person has control of one and persons connected with him (or he and persons connected with him) have control of the other; or
  • if a group of two or more persons have control of each company, and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person with whom he is connected.

Note: For these purposes a company includes a body corporate or unincorporated association.

Connected persons include:

  • a spouse or civil partner;
  • relatives and their spouse or civil partner;
  • relatives of a spouse’s or civil partner’s relatives and their spouse or civil partner;
  • if the tenant or landlord are in business in a partnership, the business partners and their spouses or civil partners and their relatives;
  • a company that the tenant or landlord controls, either by themself or with any of the persons listed above; or
  • the trustees of a settlement of which the tenant or landlord is a settlor, or of which a person who is still alive and who is connected with them as a settlor.

‘Relative’ in this context means brother, sister, ancestor or lineal descendant;

Address

You must answer this question.

Enter the address of the tenant after the effective date of the land transaction, including the house (or office) name and number and postcode. You must also enter the name of the country to which the address relates. This is the address we will use if we need to correspond with the tenant(s) involved in this transaction.

  • Questions for the 'Agent Details' sub-section

Note:

  • This section should only be completed if an agent is completing and submitting the form on behalf of the tenant.
  • If any information is entered in this section, the ‘Agent Name’ and declaration questions become mandatory, as well as either the ‘Agent’s DX number and exchange’ or the ‘Address’ questions.

The agent authorisation question must be answered for each return.

Agent Name

You must answer this question if you intend to enter any information in the ‘Agent Details’ sub-section of the ‘About the Tenant’ section of the return.

Enter the full business name of the tenant's agent.

Agent’s DX number and exchange

You must answer one or both of this question and the ‘Address’ field if you intend to enter any information in the ‘Agent Details’ sub-section of the ‘About the Tenant’ section of the return.

Enter the DX or Legal Post Number of the tenant’s agent.

Agent’s telephone number

Enter the full telephone number of the tenant’s agent (direct dial where available).

Agent’s email

Enter the email address of the tenant’s agent.

Agent’s reference

Enter a reference meaningful to the tenant’s agent.

Address

You must answer one or both of this question and the ‘Agent’s DX number and exchange’ question if you intend to enter any information in the ‘Agent Details’ sub-section of the ‘About the Tenant’ section of the return.

Enter the postal address of the tenant’s agent, including where applicable the postcode and country to which the address relates.

I, agent for the tenant(s), confirm that I have authority to deal with all matters relating to this transaction on behalf of my client(s).

You must answer this question if you have entered any information in this section of the return.

Answer ‘Yes’ to this question if you, as an agent, have been given authority from your client (the tenant) to act on their behalf in relation to this transaction. This may lead to us contacting you, as an agent for this matter, in subsequent dealings with this transaction. You must have authority from your client in order to answer ‘Yes’ to this question and we may ask for you to provide evidence of this in the future.

If you do not have authority from your client – answer ‘No’, we will correspond directly with your client in the address provided on the ‘About the Tenant’ section.

About the Property

Note: There is only space in the main paper LBTT lease review return to enter details for one property. If there is more than one property involved in the transaction, enter the details of the main (or first) property on the main return and then add the details of any other properties in the ‘Additional Details’ form which can be downloaded from our website.

Local authority number

You must answer this question. Enter the number (or code) of the local authority in whose area the property in the transaction is situated. If a property straddles a local authority boundary enter the code for the local authority in which most of the property falls.

Local authority number codes:

Code

Description

9051

Aberdeen City

9052

Aberdeenshire

9053

Angus

9054

Argyll and Bute

9055

Borders, The

9056

Clackmannanshire

9058

Dumfries and Galloway

9059

Dundee

9064

Edinburgh, City of

9020

Eilean Siar

9060

East Ayrshire

9061

East Dunbartonshire

9062

East Lothian

9063

East Renfrewshire

9065

Falkirk

9066

Fife

9067

Glasgow

9068

Highland

9069

Inverclyde

9070

Midlothian

9071

Moray

9072

North Ayrshire

9073

North Lanarkshire

9000

Orkney

9074

Perth and Kinross

9075

Renfrewshire

9010

Shetland Islands

9076

South Ayrshire

9077

South Lanarkshire

9078

Stirling

9057

West Dunbartonshire

9079

West Lothian

Title Number

Note: Only complete this question if you know the full title number.

Firstly, enter the appropriate county code for the property’s title number from the list below e.g. for Aberdeen select ‘ABN’.

Secondly, after the country code enter the property’s title number (if known).

County codes:

ABN; ANG; ARG; AYR; BER; BNF; BUT; CLK; CTH; DMB; DMF; ELN; FFE; GLA; INV; KNC; KNR; KRK; LAN; MID; MOR; NRN; OAZ; PBL; PTH; REN; ROS; ROX; SEL; STG; STH; WGN; WLN

Parent Title Number

Note: Only complete this question if you know the full parent title number.

If you do not know the title number of the property it is possible that it forms part of a larger area. Where this is the case, firstly enter the appropriate county code (see the list above) for the property’s parent title number e.g. for Aberdeen select ‘ABN’.

Secondly, after the county code enter the parent title number(s) to which the property relates.

Address

You must answer this question.

Enter the full postal address of the property, including where possible the house (or office) name, the house (or office) number and the postcode. Where there is no recognised postal address, enter a description of the property.

About the Lease

Start date as specified in lease

You must answer this question.

Enter the contractual start date of the lease as stated in the lease.

End date as specified in lease

You must answer this question.

Enter the contractual end date of the lease as stated in the lease.

If you are completing the lease review return upon termination of the lease, please enter the date the lease ended.

Typical annual rent of lease, including VAT where applicable

You must answer this question.

Enter the average annual rent (ignoring any rent-free periods) in pounds sterling under the terms of the lease, including any VAT payable on the rent.

Total premium (grassum) payable, including VAT where applicable

Enter the amount of any premium paid on the grant of the lease, plus any additional premiums paid, or to be paid, since the last return was submitted.

Relevant rental figure, including VAT where applicable

Enter the relevant rental figure under the terms of the lease. This is the annual rent in relation to the transaction in question or, if that transaction is one of a number of linked transactions for which the chargeable consideration consists of or includes rent, it is the total of the annual rents in relation to all of those transactions. See paragraph 9 of schedule 19 to the LBTT(S)A 2013 and LBTT6012.

Net present value upon which tax on rent is calculated

You must answer this question.

Enter the Net Present Value (NPV). To calculate the NPV apply the formula in paragraph 6 of schedule 19 to the LBTT(S)A 2013 or see LBTT6011. Our website also has an online tax calculator to help you work this figure out.

To calculate the NPV on a lease review return, you should use:

  • The actual amount of rent paid in each of the years preceding the review date; and
  • The actual amount of rent payable for each year in the remaining term.If the amount of rent to be paid varies in accordance with the provisions of the lease (for example, where there are rent reviews or in turnover leases), then a reasonable estimate should be provided (see LBTT6005).

Total tax already paid

You must answer this question.

Enter the total amount of LBTT already paid on this lease to date, taking account of any adjustments made on previously submitted review returns.

 
About the Calculation

Amount due for this return

Enter the total amount of LBTT due for this return.

To assist with your calculation we have an LBTT on Lease Transactions Calculator on our website which can be used for lease reviews. Please note however that because LBTT is a self-assessed tax the tenant is ultimately responsible for the amount entered against this question. While we have provided the tax calculators for your assistance, we take no responsibility for your use of it in answering this question.

Repayment

Note: This section should only be completed if the amount entered in the ‘Amount due for this return’ is a negative figure.

Are you claiming a repayment of tax

You must answer this question.

Put an ‘X’ in the box to tell Revenue Scotland whether you intend to claim repayment of the tax overpaid.

If the answer to the previous question is ‘Yes’, the following mandatory fields will be enabled:

  • Name(s) of Account Holder(s);
  • Bank/building society account number;
  • Branch sort code;
  • Name of Bank or building society;
  • Address of Bank or building society.

Please check that the bank details are correct before completing the declaration confirming that the tenant(s) have authorised repayment to be made to that bank account.

Interest is due on a repayment of LBTT and we will include this in the sum that we repay.

We aim to deal with all repayment claims for which we have full information within 10 working days of receiving them. We will contact you if we need further information to enable us to make the repayment.

Declaration

If after having read the declaration statement you are content to give your agreement to it, you must declare this by putting a ‘X’ in the box beside the statement and then:

a) including your signature;

b) printing your name clearly in block capital letters; and

c) dating the form,  

You cannot submit and make an LBTT return without completing  the declaration statement.

Note: For the avoidance of doubt, where an agent is completing and submitting this return on behalf of a taxpayer, we will assume that the declaration is made by the agent specified in the ‘Agent Details’ sub-section of the ‘About the Tenant’ section of the return.

See the separate ‘How to pay LBTT’ guidance on our website for more information on payment options and methods.

About the New Tenant

You must complete this section and submit it together with the LBTT lease review return if you have answered ‘Assignation’ in the ‘About the Transaction’ section of the return.

The ‘Additional Details Upon Assignation’ form can be downloaded from forms section of our website.

Title

Select the relevant title (if any) of the buyer from one of the following options:

Mr / Miss / Mrs / Ms / Dr / Other. 

Name

You must answer this question.

If the new tenant is a private individual enter their first name and surname.

If the new tenant is not a private individual, enter the name of the business, charity, trust, etc.

Address

You must answer this question.

Enter the address of the new tenant after the effective date of the land transaction, including the house (or office) name and number and postcode. You must also enter the name of the country to which the address relates. This is the address we will use if we need to correspond with the new tenant who the lease has been assigned to.

Telephone number

Enter a daytime telephone number that can be used to contact the new tenant.

Submitting the return

When you have completed the LBTT return, send it (together with a signed cheque for any tax payable – see the separate guidance on ‘How to pay LBTT’), to Registers of Scotland (who receive and process paper LBTT returns on behalf of us) at the following address:

Registers of Scotland, Meadowbank House, 153 London Road, Edinburgh, Midlothian, EH8 7AU (DX555400, Edinburgh 15).

Amending a return

You can amend a paper LBTT lease review return by writing to us at the address shown further below (quoting the return reference number) and telling us, for each field you wish to amend, the current entry and the entry you wish to amend to.

Note: We do not accept amendments to returns over the phone

No amendment is possible more than 12 months after the filing date of the return. We will reject any requests for amendments received after the expiry of this 12 month amendment period.

The ‘filing date’, as defined in section 82 of The Revenue Scotland and Tax Powers Act 2014, is ‘the date by which that return requires to be made by or under any enactment’ – in other words it is the last day on which the return can be made to us before it is late. In a three year review return, the filing date is 30 days after the three year anniversary date of the transaction.

If more tax is payable as a result of the amendments you have made, then the normal payment rules and arrangements apply (that is, you must enclose a cheque for the additional amount payable) – see the separate guidance on ‘How to pay LBTT’. You will also have to separately pay interest on the additional amount of tax payable, charged from the filing date of the return until the date the additional amount is paid.

Note: do not include the interest in any request to amend the ‘Amount due for this return’ question in the ‘About the Calculation’ section of the LBTT return. Interest is administered separately by us and we will send you an Interest Notice if interest is due.

If less tax is payable, we will repay the excess amount to you with interest (see the separate guidance on interest on repayments provided at RSTP4004).

If the amended return contains an inaccuracy then the person on whose behalf the amended return is being made may be liable to a penalty – see RSTP3011.

All amendments to paper returns and any associated payments should be sent to:

Revenue Scotland

PO Box 24068

EH6 9BR

Last updated: 
29 March 2018
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