Scotland’s devolved tax authority has today (Thursday 29th March) updated its online system to allow tenants of commercial leases in Scotland to submit a further Land and Buildings Transaction Tax (LBTT) return electronically from 1 April 2018.
Revenue Scotland has introduced updates to the Scottish Electronic Tax System (SETS) so that tenants holding a non-residential lease can meet their legal obligations under the Land and Buildings Transaction Tax (Scotland) Act 2013.
The legislation states that LBTT tenants must submit a further LBTT tax return:
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every three years from the effective date of the lease;
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on assignation of the lease;
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on termination of the lease.
LBTT was introduced on 1 April 2015 so the first three-year review date for leases subject to LBTT is 1 April 2018.
Revenue Scotland Head of Tax, Chris Myerscough, said: “The Land and Buildings Transaction Tax (Scotland) Act 2013 includes a requirement for the tenant in a lease which has been subject to an LBTT return to submit a further return following every third anniversary of the lease, with the first review date being 1 April 2018.
“These further returns will inform Revenue Scotland of any changes that have occurred since the last LBTT return was submitted and enable a review of the amount of tax chargeable over the lifetime of the lease so that the tenants pay the correct amount of tax.”
Returns must be filed within 30 days of the three-year anniversary of the lease to avoid a penalty. The 30-day period is designed to give tenants enough time to submit the return.
NOTES TO EDITORS
Land and Buildings Transaction Tax (LBTT) was introduced on 1 April 2015 under the Land and Buildings Transaction Tax (Scotland) Act 2013, replacing Stamp Duty Land Tax in Scotland.
Under the legislation the tenant of a notifiable lease which has been granted on or after 1 April 2015 must submit an LBTT return to Revenue Scotland on every third anniversary of the lease.
A return is also required on assignation of a lease or when a lease is terminated – both when the termination is earlier than the original lease term or if it expires on the planned expiry date.
These returns inform Revenue Scotland of any changes made to the lease since the last LBTT return was submitted to ensure the correct amount of tax is being paid.
Further information about LBTT lease review returns is available on the Revenue Scotland website (www.revenue.scot/leases), including details about access to SETS, information leaflets and FAQs, legislative and ‘how to’ guidance.
Paper LBTT return forms can also be downloaded from the website for tenants unable to submit an online return.
For any media queries, please email info@revenue.scot.