Search Legislation

Land and Buildings Transaction Tax (Scotland) Act 2013

 Help about what version

What Version

 Help about advanced features

Advanced Features

Changes over time for: SCHEDULE 7

 Help about opening options

Alternative versions:

Exit from the EU:

There may be changes and effects to this Legislation not yet recorded or applied to the text

New legislation with 'EU Exit' in the title that references (and therefore may change) this legislation item:

Due to a high volume of changes being made to legislation for EU exit, we have not been able to research and record them all. More information is available about EU Legislation and UK Law. The following results are legislation items with 'EU Exit' in their title that directly reference and therefore may change this item of legislation. To understand whether or not the text of this legislation is up to date, please check those references in the following pieces of legislation.

There are currently no additional references that you need to check.

Changes to legislation:

There are currently no known outstanding effects for the Land and Buildings Transaction Tax (Scotland) Act 2013, SCHEDULE 7. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.

SCHEDULE 7SAlternative property finance relief

(introduced by section 27)

This schedule has no associated Explanatory Notes

PART 1SIntroductory

OverviewS

1(1)This schedule makes provision for relief in the case of certain land transactions connected to alternative property finance arrangements.S

(2)It is arranged as follows—

  • Part 2 identifies the alternative property finance arrangements that are relieved,

  • Part 3 makes provision limiting the arrangements that can be relieved,

  • Part 4 provides for the circumstances in which the chargeable interest acquired by a financial institution under the arrangements is an exempt interest, and

  • Part 5 defines expressions used in this schedule.

Commencement Information

I1 Sch. 7 para. 1 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

PART 2SAlternative property finance: arrangements relieved

Land sold to financial institution and leased to personS

2SParagraphs 3 to 6 apply where arrangements are entered into between a person and a financial institution under which the institution—

(a)purchases a major interest in land (“the first transaction”),

(b)grants to the person out of that interest a lease (if the interest acquired is the interest of the owner) or a sub-lease (if the interest acquired is the tenant's right over or interest in a property subject to a lease) (“the second transaction”), and

(c)enters into an agreement under which the person has a right to require the institution to transfer the major interest purchased by the institution under the first transaction.

Commencement Information

I2 Sch. 7 para. 2 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

3SThe first transaction is exempt from charge if the seller is—

(a)the person, or

(b)another financial institution by whom the interest was acquired under arrangements of the kind mentioned in paragraph 2 entered into between it and the person.

Commencement Information

I3 Sch. 7 para. 3 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

4SThe second transaction is exempt from charge if the provisions of this Act relating to the first transaction are complied with (including payment of any tax chargeable).

Commencement Information

I4 Sch. 7 para. 4 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

5SA transfer to the person that results from the exercise of the right mentioned in paragraph 2(c) (“the third transaction”) is exempt from charge if—

(a)the provisions of this Act relating to the first and second transactions are complied with, and

(b)at all times between the second and third transactions—

(i)the interest purchased under the first transaction is held by a financial institution, and

(ii)the lease or sub-lease granted under the second transaction is held by the person.

Commencement Information

I5 Sch. 7 para. 5 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

6SThe agreement mentioned in paragraph 2(c) is not to be treated—

(a)as substantially performed unless and until the third transaction is entered into (and accordingly section 14 does not apply), or

(b)as a distinct land transaction by virtue of section 12 (options and rights of pre-emption).

Commencement Information

I6 Sch. 7 para. 6 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

Land sold to financial institution and person in commonS

7SParagraphs 8 to 12 apply where arrangements are entered into between a person and a financial institution under which—

(a)the institution and the person purchase a major interest in land as common owners (“the first transaction”),

(b)the institution and the person enter into an agreement under which the person has a right to occupy the land exclusively (“the second transaction”), and

(c)the institution and the person enter into an agreement under which the person has a right to require the institution to transfer to the person (in one transaction or a series of transactions) the whole interest purchased under the first transaction.

Commencement Information

I7 Sch. 7 para. 7 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

8SThe first transaction is exempt from charge if the seller is—

(a)the person, or

(b)another financial institution by whom the interest was acquired under arrangements of the kind mentioned in paragraph 7 entered into between it and the person.

Commencement Information

I8 Sch. 7 para. 8 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

9SThe second transaction is exempt from charge if the provisions of this Act relating to the first transaction are complied with (including payment of any tax chargeable).

Commencement Information

I9 Sch. 7 para. 9 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

10SAny transfer to the person that results from the exercise of the right mentioned in paragraph 7(c) (“a further transaction”) is exempt from charge if—

(a)the provisions of this Act relating to the first transaction are complied with, and

(b)at all times between the first and the further transaction—

(i)the interest purchased under the first transaction is held by a financial institution and the person as common owners, and

(ii)the land is occupied by the person under the agreement mentioned in paragraph 7(b).

Commencement Information

I10 Sch. 7 para. 10 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

11SThe agreement mentioned in paragraph 7(c) is not to be treated—

(a)as substantially performed unless and until the whole interest purchased by the institution under the first transaction has been transferred (and accordingly section 14 does not apply), or

(b)as a distinct land transaction by virtue of section 12 (options and rights of pre-emption).

Commencement Information

I11 Sch. 7 para. 11 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

12SA further transaction that is exempt from charge by virtue of paragraph 10 is not a notifiable transaction unless the transaction involves the transfer to the person of the whole interest purchased by the institution under the first transaction, so far as not transferred by a previous further transaction.

Commencement Information

I12 Sch. 7 para. 12 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

Land sold to financial institution and re-sold to personS

13SParagraphs 14 and 15 apply where arrangements are entered into between a person and a financial institution under which—

(a)the institution—

(i)purchases a major interest in land (“the first transaction”), and

(ii)sells that interest to the person (“the second transaction”), and

(b)the person grants the institution a standard security over that interest.

Commencement Information

I13 Sch. 7 para. 13 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

14SThe first transaction is exempt from charge if the seller is—

(a)the person, or

(b)another financial institution by whom the interest was acquired under other arrangements of the kind mentioned in paragraph 2 or 7 entered into between it and the person.

Commencement Information

I14 Sch. 7 para. 14 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

15SThe second transaction is exempt from charge if the financial institution complies with the provisions of this Act relating to the first transaction (including the payment of any tax chargeable on a chargeable consideration that is not less than the market value of the interest and, in the case of the grant of a lease, the rent).

Commencement Information

I15 Sch. 7 para. 15 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

PART 3SAlternative property finance: arrangements not relieved

No relief where first transaction already relievedS

16SParagraphs 2 to 12 do not apply to arrangements in relation to which group relief, reconstruction relief or acquisition relief—

(a)is available for the first transaction, or

(b)has been withdrawn from that transaction.

Commencement Information

I16 Sch. 7 para. 16 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

No relief where arrangements to transfer control of financial institutionS

17SParagraphs 2 to 12 do not apply to alternative finance arrangements if those arrangements, or any connected arrangements, include arrangements for a person to acquire control of the relevant financial institution.

Commencement Information

I17 Sch. 7 para. 17 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

18SThat includes arrangements for a person to acquire control of the relevant financial institution only if one or more conditions are met (such as the happening of an event or doing of an act).

Commencement Information

I18 Sch. 7 para. 18 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

19SIn paragraphs 17 and 18—

  • alternative finance arrangements” means the arrangements referred to in paragraphs 2 and 7,

  • connected arrangements” means any arrangements entered into in connection with the making of the alternative finance arrangements (including arrangements involving one or more persons who are parties to the alternative finance arrangements),

  • relevant financial institution” means the financial institution which enters into the alternative finance arrangements.

Commencement Information

I19 Sch. 7 para. 19 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

20SSection 1124 of the Corporation Tax Act 2010 (c.4) applies for determining who has control of the relevant financial institution.

Commencement Information

I20 Sch. 7 para. 20 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

PART 4SExempt interest

Interest held by financial institution an exempt interestS

21SAn interest held by a financial institution as a result of the first transaction within the meaning of paragraph 2(a) or 7(a) is an exempt interest for the purposes of the tax.

Commencement Information

I21 Sch. 7 para. 21 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

22SThat interest ceases to be an exempt interest if—

(a)the lease or agreement mentioned in paragraph 2(b) or 7(b) ceases to have effect, or

(b)the right under paragraph 2(c) or 7(c) ceases to have effect or becomes subject to a restriction.

Commencement Information

I22 Sch. 7 para. 22 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

23SParagraph 21 does not apply if the first transaction is exempt from charge by virtue of schedule 10 (group relief) or 11 (reconstruction and acquisition reliefs).

Commencement Information

I23 Sch. 7 para. 23 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

24SParagraph 21 does not make an interest exempt in respect of—

(a)the first transaction itself, or

(b)a third transaction or a further transaction within the meaning of paragraph 5 or 10.

Commencement Information

I24 Sch. 7 para. 24 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

PART 5SInterpretation

InterpretationS

25(1)In this schedule “financial institution” has the meaning given by section 564B of the Income Tax Act 2007 (c.3).S

(2)For this purpose section 564B(1) applies as if paragraph (d) were omitted.

Commencement Information

I25 Sch. 7 para. 25 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

26SIn this schedule—

  • arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable),

  • references to a person are to be read, in relation to times after the death of the person concerned, as references to the person's personal representatives.

Commencement Information

I26 Sch. 7 para. 26 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

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.

Close

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
Close

Timeline of Changes

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. 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
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources