All land transactions need to be notified to us by means of a LBTT return unless (in relation to transactions other than those involving leases):
- the interest in question is an exempt interest, namely a security interest such as the creditor’s interest in a standard security, in which case the transaction is beyond the scope of the legislation;
- the transaction is classed as an exempt transaction (see LBTT3002);
- the chargeable consideration for the transaction involving the acquisition of ownership and all linked transactions is less than £40,000; or
- it is an acquisition of a chargeable interest other than a major interest in land where the chargeable consideration does not exceed the nil rate tax band applicable to the transaction.
None of the above apply where the transaction is under a contract providing for conveyance to a third party (see LBTT1006).
Separate rules apply relating to transactions involving leases which are notifiable. See LBTT6010 for more information.
Where a tax relief (see LBTT3010) is claimed to reduce or even eliminate the tax chargeable, a LBTT return must still be made if the consideration includes any amount on which LBTT would be chargeable but for the relief.