LBTT4021 - LBTT return where contingency ceases or consideration ascertained

LBTT guidance on the further LBTT return which must be made when a contingent, uncertain or unascertained consideration becomes known.

LBTT4021 - LBTT return where contingency ceases or consideration ascertained

To adjust the amount of LBTT payable when a contingent, uncertain or unascertained consideration becomes known, the buyer must make a return or further LBTT return to us. This must be made within 30 days of the day after the contingency ceasing or the consideration being ascertained. The date the return is required to be made by is the filing date (see LBTT1000).

Note: The date the contingent consideration is no longer contingent, or the uncertain or unascertained consideration becomes certain or ascertained (whichever applies), is the ‘relevant date’ for the purposes of the ‘relevant date’ field in the LBTT return.

The LBTT return must contain a self-assessment of the tax payable, calculated in accordance with the rates in force at the original effective date of the transaction, together with payment of any tax now due.

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

A buyer who fails to make a 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).

Less tax payable

A claim can be made for repayment of tax if less tax is payable for the transaction as a result of the contingent consideration ceasing or the uncertain or unascertained consideration becoming known. If the claim is made within the 12 month period allowed for the amendment of a LBTT return, the claim must be made by amending the LBTT return (see LBTT4006).

If the claim is made after the end of the 12 month amendment period, the claim must be made under section 107 of the RSTPA 2014 and no later than five years after the date the original return was required to be made (see section 115 of the RSTPA 2014). Further guidance on how to make such a claim can be found in RSTP7003.

Interest will be paid on repayment of overpaid tax from the date of original payment by the buyer. Interest will be charged however from the day after the payment was due (see RSTP4004).

LBTT(S)A 2013 sections 31 and 32

LBTT(S)A 2013 section 40

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.

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