Worked example for LBTT4014 Calculating the amount of tax chargeable: linked transactions.

## Example:

A might agree to buy three plots of land from B. A buys them in three different transactions on the same day, so the three transactions are linked.

The consideration given for each plot is:

Plot 1: £100,000
Plot 2: £200,000
Plot 3: £300,000

The total chargeable consideration is this example would be £600,000.

Using the rates and bands for non-residential property transaction the total tax chargeable would be:

(£150,000 x 0%)+(£200,000 x 3%)+(£250,000 x 4.5%) = £17,250

The next step is to calculate the tax payable for each individual plot. This is calculated as the total tax payable multiplied by the consideration for each individual plot divided by the total consideration for all of the linked transactions. The calculation for plot 1 would be:

£17,250 x £100,000 / £600,000 = £2875

This calculation is repeated for each plot using the individual consideration for the relevant plot.

Plot 2 calculation:

£17,250 x £200,000 / £600,000 = £5750

And plot 3:

£17,250 x £300,000 / £600,000 = £8625