This relief is provided by the provisions of schedule 3 to the LBTT(S)A 2013.
Description of relief
Sale and leaseback transactions involve a buyer agreeing to purchase land or buildings from a seller, then that same buyer leasing the land or buildings, or part of them, back to the seller who then becomes the tenant. Subject to certain conditions, sale and leaseback relief ensures that the second transaction, the leaseback, is relieved from LBTT.
All three of the conditions must be met for sale and leaseback relief to apply:
- the sale must be entered into wholly or partly in consideration of the leaseback;
- any other consideration for sale is the payment of money (in any currency) or the assumption, satisfaction or release of debt; and
- where both parties are bodies corporate at the effective date of the leaseback, they are not members of the same group for the purposes of group relief.
Claiming the relief
To claim this relief see the guidance on 'How to make a LBTT return and pay tax' which is available separately on our website.