Land and Buildings Transaction Tax (Scotland) Act 2013 (asp 11)

SCHEDULE 19 Leases

PART 2 Amount of tax chargeable: rent

Amount of tax chargeable in respect of rent

4 The amount of tax chargeable on so much of the chargeable consideration as consists of rent is to be determined as follows.

• Step 1

  Calculate the net present value (NPV) of the rent payable over the term of the lease (see paragraph 6).

• Step 2

  For each tax band, multiply so much of the NPV as falls within the band by the tax rate for that band.

• Step 3

  Calculate the sum of the amounts reached under Step 2.

  The result is the amount of tax chargeable in respect of rent.