LBTT4015 - LBTT return or further LBTT return in consequence of a later linked transaction

LBTT guidance on when a LBTT return, or further LBTT return, may be required to be made in relation to linked transactions.

An LBTT return, or further LBTT return, must be made by the buyer to us where there is a later transaction that is linked to an earlier one, and as a result:

  • the earlier transaction becomes notifiable;
  • more tax is payable on the earlier transaction; or
  • tax becomes payable on the earlier transaction when none was payable before.

The LBTT return, or further LBTT return, must be made within 30 days of the day after the effective date of the later transaction. The date the return is required to be made by is the filing date (see LBTT1000).

Note: The effective date of the later linked transaction is the ‘relevant date’ for the purposes of the ‘relevant date’ field in the LBTT return.

The LBTT return must include an assessment of the amount of tax due, together with payment of any tax due, based on the tax rates and bands that applied at the effective date of the earlier transaction.

Guidance on How to make an LBTT return and pay tax is available separately on our website.

Once the LBTT return has been made, subject to certain restrictions it can be amended up to 12 months after the filing date - see LBTT4006.

There may also be a requirement to submit a LBTT return in respect of the later transaction.

LBTT(S)A 2013 section 34

LBTT(S)A 2013 section 40

A buyer who fails to make a LBTT return to us by the filing date is liable to a penalty (see RSTP3005). If the return contains an inaccuracy, the buyer may be liable to a penalty (see RSTP3011).

A buyer who fails to pay tax prior to the expiry of 30 days after the date payment is due (the day the LBTT return is made) is liable to a penalty (see RSTP3008). Interest will be charged however on the amount of any unpaid tax from the filing date until the date it is paid (see RSTP4002).

A buyer required to make a LBTT return to us is also required to keep and preserve certain records in relation to making a correct and complete return. See the guidance on keeping and preserving records (LBTT9001) for more information.

Ref ID: 
LBTT4015
Archive Date: 
8 March 2015
Last updated: 
8 March 2015
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