LBTT2005 - Contingent, uncertain or unascertained consideration

LBTT guidance on the treatment of contingent, uncertain or unascertained consideration when determining the chargeable consideration in a land transaction.

LBTT is chargeable on the consideration paid for a property. For the position of rent see LBTT6004.

Where some or all of the chargeable consideration to be paid is contingent on an uncertain future event, then the amount of consideration used in the LBTT return is determined on the assumption that the contingency will be resolved so that the consideration is payable or, as the case may be, does not cease to be payable.

LBTT(S)A 2013 section 18

Where some or all of the chargeable consideration to be paid is uncertain or unascertained because it depends on uncertain future events, then a reasonable estimate of the amount of consideration should be provided in the LBTT return.

LBTT(S)A 2013 section 19

Once the contingency is resolved or, as the case may be, the consideration ascertained, if the final consideration differs from that already used in the LBTT return, a further LBTT return should be made and any surplus reclaimed or further tax paid – see LBTT4021.

LBTT(S)A 2013 sections 31 and 32

Where contingent, uncertain or unascertained consideration will not be known until after the effective date, it may be possible to make an application to defer payment of LBTT – see LBTT4016.

LBTT(S)A 2013 section 20

LBTT(S)A 2013 section 41

A worked example illustrating a transaction involving contingent consideration is provided separately on our website under LBTT Worked Examples.

Ref ID: 
LBTT2005
Archive Date: 
8 March 2015
Last updated: 
8 March 2015
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