LBTT4019 - Acceptance of an application for deferral of payment

LBTT guidance on what happens following Revenue Scotland accepting an application to defer payment of LBTT for contingent or uncertain consideration.

We may ask for further information in order to determine if an application for deferral (where contingent or uncertain consideration applies) should be approved.

If we accept the application for deferral of payment, the notice of approval we give must set out the terms of approval and must, in particular:

  • specify:
    • any tax payable in accordance with a land transaction return relating to the transaction in question;
    • the nature of any relevant event (see below); and
    • the date of any relevant event (if known);


‘Relevant event’ in this context means an event on the occurrence of which the whole or any part of the consideration to which an application relates will either cease to be contingent or become certain.

We will also give you a deferral reference number which you should enter on the ‘Deferral reference’ field on the LBTT return (or any further return you make in relation to the same transaction).

Regulation 8 of The Land and Buildings Transaction Tax (Administration) (Scotland) Regulations 2014

If the application relates to tax that has already been paid, we will repay the amount paid to the taxpayer, along with any interest that accrued since the date of payment. See RSTP4004 for further guidance on interest.

Where we accept the application, the buyer must make an LBTT return or further LBTT return:

  • within 30 days of the consideration ceasing to be contingent or becoming certain;
  • if relevant, within 30 days of the substantial completion of works or services which make up some or all of the contingent or uncertain consideration;
  • in accordance with a scheme for payment of tax for works under which services are expected to last for more than 6 months; or
  • after the final payment has been made for such a scheme for payment of tax, within 30 days of the buyer obtaining new information which changes the amount of tax payable in relation to tax that has already been paid.

The LBTT return and payment of tax must be made at the same time. Guidance on How to make an LBTT return and pay tax is available separately on our website.

In the event that less tax is payable than has already been paid, the buyer may submit a claim for overpayment of tax by:

  • amending the LBTT return, if within the period allowed for the amendment of a return (see LBTT4006); or
  • if outwith this period, making a claim under section 107 of the RSTPA 2014 no later than five years after the date the original return was required to be made (see RSTP7003).

Any tax repaid will be repaid together with any interest accrued since the date of payment (see RSTP4004).

Regulation 11 of The Land and Buildings Transaction Tax (Administration) (Scotland) Regulations 2014

Where there is a scheme of payment in place in accordance with the third bullet point above, the buyer and us may agree to vary the scheme of payment so that the next LBTT return or further return due to be made in relation to the consideration (or element of the consideration) consisting of works or services may be made within 30 days after the substantial completion of the works or services.

If the works or services are not then substantially completed within six months of the date on which the LBTT return or further return would have been required (but for the effect of the variation) then the variation ceases to have effect and a return or further return will be required in accordance with the third bullet point above.

Regulation 14 of The Land and Buildings Transaction Tax (Administration) (Scotland) Regulations 2014

An application that we have accepted shall have no effect if it contains false information or if any significant facts or circumstances relevant to it are not disclosed to us. An application will also cease to have effect if the facts and circumstances relevant to it change.

Regulation 13 of The Land and Buildings Transaction Tax (Administration) (Scotland) Regulations 2014

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Archive Date: 
8 March 2015
Last updated: 
8 March 2015
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