Search Legislation

Land and Buildings Transaction Tax (Scotland) Act 2013

Schedule 18 – Trusts

267.This schedule, introduced by section 50, provides for the treatment of trusts in respect of LBTT. Section 50(2) contains a regulation making power to allow the Scottish Ministers to amend schedule 18.

268.Trusts are divided into “bare trusts” and “settlements” with settlements defined as trusts which are not bare trusts (paragraph 20). Bare trusts are trusts where the beneficiary is absolutely entitled to the property as against the trustee (paragraph 18) and includes the bilateral type of trust where the bare trustee holds the property as nominee for another. All trusts are caught by these provisions if they have land in Scotland as trust property. Accordingly off-shore trusts will be liable to pay LBTT if they acquire Scottish land. Also if beneficiaries of trusts transfer their interest in the trust property (to the extent it is land in Scotland) there will be a liability on the acquirer to pay LBTT. Because however this type of transaction depends on a developed trust law as in England, English law is applied to Scottish trusts and those of other jurisdictions (other than the United Kingdom) to the effect that if in England a beneficiary has an equitable interest, the beneficiary in the Scottish trust and those in the other jurisdictions are held to have an interest (paragraph 2) and someone acquiring the beneficiary’s interest is also treated as acquiring an interest in the trust property (to the extent it is land in Scotland).

269.The liability to pay the tax is imposed, subject to one exception, on the trustees, with the tax able to be recovered from any one of the trustees. The exception is where there is a bare trust, in which case the beneficiaries are liable for the payment of the tax. Paragraph 6, however, provides for a right of recovery also against the “bare trustee” when the beneficiary has failed to make a return or payment.

Back to top


Print Options


Explanatory Notes

Text created by the Scottish Government to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Acts of the Scottish Parliament except those which result from Budget Bills.


More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources