Law Society of Scotland welcomes new Land and Buildings
Transaction Tax Bill
The Law Society of Scotland has today welcomed the introduction of
the Land and Buildings Transaction Tax (Scotland) Bill, which will
provide for new provisions for a Scottish tax on land transactions
to replace Stamp Duty Land Tax from April 2015.
The Bill is the first of three related bills being brought forward
by the Scottish Government as a consequence of measures enacted in
the Scotland Act 2012.
The Society responded to the Scottish Government's consultation
earlier this year, and suggested that in relation to leases, the
proposed new tax on land and property transactions (LBTT) should be
based on rent actually paid rather than using the current method of
Isobel d'Inverno, convener of the Society's tax law sub-committee
said: "As we said when we submitted our response to the
consultation, this new tax has the potential to make a real
improvement on the current system in Scotland. We welcome the
simplified drafting of the Bill using Scots law terminology and
reflecting Scottish conveyancing practice and we are particularly
pleased to see that the Bill replaces the existing "slab and slice"
system of payment with progressive rates.
"The accompanying policy memorandum reflects the constructive
discussion that we had with the Scottish Government prior to the
introduction of the Bill and includes an undertaking to give
further consideration to the options we set out for the treatment
of non-residential leases, as well as recognition of our concerns
about making registration of title subject to receipt of
"The Society's tax law sub-committee is looking forward to
considering the Bill in full detail."
Notes to editors
The Society's full response to the Scottish Government consultation
'Taking forward a Scottish Land and Buildings Transaction
Tax' can be found on the Society's website
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03 December 2012