Committee Updates March 2015

LBTT – Sub-sale Development Relief and Multiple Dwellings Relief) (Scotland) Order 2015

On 25 February, Isobel d’Inverno, convener of the Society’s Tax Law Sub-Committee, gave evidence to the Scottish Parliament’s Finance Committee on the Scottish Government’s proposals in relation to sub-sale development relief and multiple dwellings relief for Land and Buildings Transaction Tax.  Ms Isobel welcomed the Scottish Government’s policy shift so that the sub-sale development relief will now be claimed and given at the outset, subject to it being withdrawn or partially withdrawn in the event a “significant development” does not take place on the acquired site within 5 years. The original proposal, whereby the relief could only be claimed when the “significant development” had completed, would potentially have resulted in a commercial disadvantage for Scotland and led developers to build in England instead where the relief is more widely available.  Isobel also welcomed the wider definition of “significant development” now proposed by the Scottish Government but suggested that the 5 year period for the “significant development” to take place should be subject to an extension on cause shown for a further reasonable period determined by Revenue Scotland.