About the Transaction

How to complete the 'About the Transaction' section of the paper LBTT form.

Description of transaction

You must answer this question.

Note:

  • If you answer ‘Conveyance or transfer’ to this question you must only complete the later ‘About the Conveyance or Transfer’ section of the return – do not complete the ‘About the Lease’ section.
  • If you answer ‘Lease’ to this question you must only complete the later ‘About the Lease’ section of the return – do not complete the ‘About the Conveyance or Transfer’ section.

Indicate whether the land transaction is either a conveyance/transfer or a lease. A brief description of each option is outlined below.

  • Conveyance or transfer - This category includes transactions that convey or transfer an interest in land or buildings. It also includes contracts which are deemed under legislation to be chargeable as a conveyance or transfer on sale.

Note:

In the case of the assignation of a lease (other than one treated as the grant of a new lease), if the assignee is required to make a return then select ‘Conveyance or transfer’ rather than ‘Lease’. In these circumstances the assignee should make the return, and LBTT is chargeable only on the consideration (including any premium) from the assignee to the assignor.

In the case of the renunciation of a lease, if the landlord is required to make a return then select ‘Conveyance or transfer’ and not ‘Lease’. In these circumstances the landlord should make the return, and LBTT is only chargeable on any premium or consideration given from the landlord to the tenant.

  • Lease - This category includes chargeable transactions which constitute a lease (see LBTT6001). Typical transactions falling under this category would be a lease of commercial buildings/offices.

Type of property

You must answer this question.

The type of property must be stated, as different tax rates and bands apply to residential and non-residential property transactions. Residential and non-residential/mixed property are defined in section 59 of the LBTT(S)A 2013 and in guidance at LBTT4010 and LBTT4012 respectively.

Effective date of transaction

You must answer this question.

Enter (in DD/MM/YYYY format) the effective date of the transaction (defined under section 63 of the LBTT(S)A 2013). The effective date of the transaction is usually the date of completion, but other dates can apply. For further guidance on the effective date in a non-lease transaction and a lease transaction see LBTT1004 and LBTT6002 respectively.

Relevant date

You must answer this question.

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

  • standard notifiable transaction such as a house purchase (section 29 - see LBTT4004 and LBTT6010 or, alternatively, the above guidance for the ‘Effective date of transaction’ field) - the effective date of the transaction;
  • contingency ceasing, unknown consideration becoming known, or unascertained consideration becoming ascertained (section 31 - see LBTT4021) - the date of the event as a result of which the return is required, such as the date the contingent consideration is no longer contingent;
  • further return where relief is withdrawn (section 33 - see LBTT4022) - the date on which the relevant event occurred, for example in the withdrawal of group relief the date the buyer ceases to be a member of the same group as the seller
  • return or further return in consequence of later linked transactions (section 34 - see LBTT4015) - the effective date of the later linked transaction;
  • three yearly review of lease (paragraph 10 of schedule 19 - see LBTT6015) - the review date as defined in paragraph 10(7) of that schedule;
  • assignation or termination of a lease (paragraph 11 of schedule 19 - see LBTT6017) - the day on which the lease is assigned or terminated;
  • lease continuing after a fixed term causing it to become notifiable (paragraph 20 of schedule 19 - see LBTT6020) - the date on which the one year period mentioned in paragraph 20(3) ended;
  • lease for an indefinite term (paragraph 22 of schedule 19 - see LBTT6021) - the date on which the deemed fixed term mentioned in paragraph 22(2) ended; and
  • increase in rent or extension of term for a lease causing it to become notifiable (paragraph 30 of schedule 19 - see LBTT6029) - the date from which the variation mentioned in that paragraph takes effect.

Date of contract or conclusion of missives

Enter (in DD/MM/YYYY format) the date of execution of the contract or conclusion of the missives, whichever applies.

Is Additional Dwelling Supplement (ADS) due on this transaction?

You MUST answer this question. If you answer “Yes” you must complete the Additional Dwelling Supplement form. Failure to do so will result in us rejecting the return as incomplete and returning it to you.

Additional Dwelling Supplement (ADS) may be due if this transaction includes an additional dwelling, as defined under schedule 2A LBTT(S)A 2013. Please see LBTT10001 to determine whether ADS is due on this transaction.

This will depend on:

a) whether the buyer is an individual (or individuals) or a non–natural person and

b) the type of property acquired.

You should answer ‘No’ to this question if the buyer is an individual or individuals and:

  • the transaction is or includes the buyer’s next main residence;
  • at the end of the effective date of the transaction the buyer still owned their previous residence but intend to sell it; and
  • the sale completed before this return is being submitted.

If however the buyer is an individual or individuals who is / are replacing their main residence but they have not sold their previous main residence before this return is submitted, you must answer ‘Yes’ to this question. ADS is due but the buyer may be able to claim a repayment if they sell their previous main residence within 18 months of the effective date of this transaction (see LBTT10070). 

If relief is being claimed against the ADS, that is if either relief 24 – ADS purchase of 6 or more dwellings, or relief number 26 – ADS Family Units, is being claimed, you should answer yes to the question ‘is ADS due on this transaction’, and then you must claim the relief in the ‘about the calculation’ section

Is this transaction pursuant to a previous option agreement?

You must answer this question.

An option is a binding right granted by the current landowner giving a prospective buyer an entitlement to purchase that land before a specified date (see LBTT1007).

Does this transaction include any element of exchange or part exchange?

You must answer this question.

If the transaction involves an exchange (commonly known as an excambion in Scotland) of buildings or land between the buyer and seller, you should answer ‘Yes’ (see LBTT5002).

Is this transaction linked to any others?

You must answer this question.

Note: if you answer ‘Yes’ to this question, and you selected ‘Conveyance or transfer’ against the ‘Description of transaction’ question, then you must answer the ‘Total consideration or value in money or money’s worth, including VAT paid for all of the linked transactions’ question in the later ‘About the Conveyance or Transfer’ section.

Transactions are linked (see LBTT2008) if they are all in Scotland and at least one of the following apply:

  • the transactions are between the same buyer and seller or between people connected with either of them (see the guidance for the ‘Are the buyer(s) and seller(s) connected?’ question in the ‘About the Buyer’ section for determining whether people are ‘connected’); or
  • the transaction forms part of a single arrangement  or scheme or part of a series of transactions.

Is this transaction included in a package with transactions elsewhere in the UK, but outside of Scotland?

You must answer this question.

You should answer ‘Yes’ if any other property in this package is outside of Scotland but within the UK. One way to test this is to consider if all the properties were in Scotland and would then be deemed to be ‘linked’ (see LBTT2008).

For single transactions you should answer ‘No’.

Last updated: 
5 July 2017

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