The Land and Buildings Transaction Tax (Miscellaneous Amendments) (Scotland) Order 2024

Citation and commencement

1.  This Order may be cited as the Land and Buildings Transaction Tax (Miscellaneous Amendments) (Scotland) Order 2024 and comes into force on 1 April 2024.

Relief for certain acquisitions by local authorities

2.  In section 27(1) of the Land and Buildings Transaction Tax (Scotland) Act 2013 (reliefs) after “schedule 6 (relief for certain acquisitions by registered social landlords),” insert—

“schedule 6A (relief for certain acquisitions by local authorities),”.

3.  After schedule 6 of the Land and Buildings Transaction Tax (Scotland) Act 2013, insert schedule 6A contained in the schedule of this Order.

Amendment of schedule 2A

4.  Schedule 2A of the Land and Buildings Transaction Tax (Scotland) Act 2013 (additional amount: transactions relating to second homes etc.)(1) is amended in accordance with articles 5 to 9.

5.  In paragraph 2(2)—

(a) in head (a), for “18” substitute “36”,

(b) in head (b), for “18” substitute “36”.

6.  In paragraph 6—

(a) after sub-paragraph (1), insert—

“(1A) For the purposes of paragraph 8(1), a dwelling which is disposed of by—

(a) the buyer’s spouse or civil partner,

(b) the buyer’s cohabitant,

(c) a person aged under 16 who is a child of—

(i) the buyer,

(ii) the buyer’s spouse or civil partner, or

(iii) the buyer’s cohabitant,

is to be treated as being disposed of by the buyer.”,

(b) in sub-paragraph (2), for “and (1)(c)(ii)” substitute “, (1)(c)(ii), (1A)(a) and (1A)(c)(ii)”,

(c) in sub-paragraph (4), for “and (1)(c)(iii)” substitute “, (1)(c)(iii), (1A)(b) and (1A)(c)(iii)”.

7.—(1) Paragraph 8(1) is amended in accordance with paragraphs (2) to (5).

(2) In head (a)—

(a) for “18” substitute “36”,

(b) for “the day after” substitute “or ending with”,

(c) after “buyer” insert “or, where there are two or more buyers who are or will be jointly entitled to the interest acquired, one of the buyers”.

(3) In head (b)—

(a) after “buyer’s” insert “or, where there are two or more buyers who are or will be jointly entitled to the interest acquired, one of the buyers’”,

(b) for “18” substitute “36”,

(c) omit “and”.

(4) In head (c), for “buyer’s only or main residence.” substitute “buyer’s or, where there are two or more buyers who are or will be jointly entitled to the interest acquired, all of the buyers’ only or main residence, and”.

(5) After head (c) insert—

“(d) where there are two or more buyers who are or will be jointly entitled to the interest acquired, each of whom own a dwelling or dwellings other than the subject-matter of the transaction, all of the buyers must meet the conditions specified in this sub-paragraph.”.

8.  After paragraph 9A(2) insert—

“Relief for beneficiaries

9B.— (1) A chargeable transaction to which this schedule applies by virtue of paragraph 2 is exempt from the additional amount if—

(a) at the end of the day that is the effective date of the transaction, the buyer or, where there are two or more buyers who are or will be jointly entitled to the interest acquired, one of the buyers owns two or more dwellings,

(b) the date of acquisition of ownership of all but the last of those dwellings is after the date on which the buyer entered into the contract for the land transaction relating to the last of those dwellings, but before the effective date, and

(c) the buyer—

(i) is a beneficiary of the estate of a deceased person and acquired ownership of all but the last of those dwellings by virtue of a conveyance or transfer in their favour by the executors of that person, or

(ii) otherwise acquires ownership of all but the last of those dwellings as a result of the death of a person.

(2) For the purposes of paragraph (1) the date on which the buyer acquired ownership of a dwelling by virtue of a conveyance or transfer in their favour by the executor of a deceased person is the date on which the conveyance or transfer was delivered by the executor to the buyer.

Relief for separated spouses and civil partners retaining interest in former main residence

9C.   A chargeable transaction to which this schedule applies by virtue of paragraph 2 is exempt from the additional amount if—

(a) at the end of the day that is the effective date of the transaction, the buyer is the owner of two dwellings,

(b) the first of the two dwellings was at any time before the effective date of the transaction the only or main residence of the buyer and the buyer’s spouse, civil partner, former spouse or former civil partner,

(c) the first of the two dwellings is the only or main residence of the buyer’s spouse, civil partner, former spouse or former civil partner,

(d) the buyer and the buyer’s spouse, civil partner, former spouse or former civil partner do not intend to live together again, and

(e) the buyer retains an ownership interest in the first of the two dwellings in pursuance of an order of a court or agreement of a type referred to in paragraph 4 or 5 of schedule 1.”.

9.  In paragraph 17(2) after “dwelling” insert “, but if the market value of the share in the ownership interest of the dwelling of any of the persons is less than £40,000, that share is not to be counted for the purposes of determining whether this schedule applies to a transaction under paragraph 2 of this schedule”.

TOM ARTHUR

Authorised to sign by the Scottish Ministers

St Andrew’s House,

Edinburgh

27th March 2024