LBTT4016 - Application to defer payment of LBTT

Guidance on cases where all or part of the consideration is contingent or uncertain.

LBTT4016 - Application to defer payment of LBTT

An application to defer payment of LBTT should be made by completing the Revenue Scotland Deferral Application Form.

For further information on the deferral application process, please see the below guidance.


A buyer can make an application to Revenue Scotland to defer the LBTT payable on a land transaction as per the Land and Buildings Transaction Tax (Scotland) Act 2013 S.41.

An application to defer the LBTT payable on a transaction may be made by the buyer where whole or part of the chargeable consideration:

  • is contingent or uncertain; and
  • becomes payable or may become payable more than 6 months after the effective date of the transaction.

An application under this section does not affect the buyer's obligation to pay LBTT on any consideration that:

  • has already been paid when the application is made; or 
  • is certain. 

Payment of LBTT in respect of delayed consideration cannot be postponed. Where consideration is known but it is payable at a later date, the LBTT must be paid when the original return is submitted.

A deferral will not be available in the following situations:

  • Where consideration consists of rent; 
  • Where the uncertain or contingent amount is payable within 6 months of the effective date; 
  • Where consideration, not being contingent, is ascertainable but has yet to be ascertained 

Where consideration is ascertainable but not yet ascertained, the LBTT return should be completed on the basis of a best estimate of the purchase price which will be payable.

If an application for deferral is approved, depending on certain events occurring (such as consideration ceasing to be contingent or becoming certain or ascertained) a buyer is required to make a return or further return to us.

A worked example on applications to defer payment of tax is provided separately on our website under LBTT Worked Examples.

Content of the Application to Defer Payment of Tax

The application must set out:

  • the transaction reference number (if return submitted);
  • the effective date of the transaction;
  • the identity of the buyer;
  • the buyer’s correspondence address;
  • the location of the land involved;
  • the certain chargeable consideration;
  • the amount of consideration for which deferment is sought;
  • a reasoned opinion as when this part of the consideration will cease to be contingent or can be ascertained;
  • the total chargeable consideration;
  • a calculation of the amount of LBTT due on the total chargeable consideration;
  • a calculation of the LBTT payable in respect of which the application to defer payment refers. Please see our Application to Defer Payment Example for guidance on calculating deferred tax);
  • the nature of the contingency/uncertain payment(s); and
  • as much detail of the times of expected payments as it is possible to give.

We may ask for further information in order to determine if an application for deferral should be accepted. Revenue Scotland may require further information to consider the application. If the information is not provided, Revenue Scotland may refuse the application.

Acceptance of an Application to Defer Payment of LBTT

If an application to defer payment of LBTT is accepted, the notice of acceptance will set out the terms of acceptance and specify, in particular:

  • the amount of tax payable in accordance with the initial land transaction return; and
  • the nature and dates of any relevant event (see below); 

‘Relevant event’ in this context means an event on the occurrence of which the whole or any part of the consideration to which an application relates will either cease to be contingent or become certain.

Following acceptance of an application to defer payment of LBTT, you must include the deferral reference number on the LBTT return (and any future return in relation to the transaction). If a return has already been submitted, you must amend the return to include the reference number.

Any amendment to or further return must be submitted within 30 days of any event become certain or known and tax paid at the same time.

Refusal of an Application to Defer Payment of LBTT

We may refuse an application for deferral of payment in the following circumstances:

  • whole or some part of the chargeable consideration is not contingent or uncertain;
  • the consideration is not payable more than 6 months after the effective date of the transaction;
  • the application is not submitted in the correct form required, or does not contain the required information;
  • the application, or information provided in connection with it, is incorrect;
  • the application is missing relevant information and such information is not provided to the tax authority by a specified date as requested; or
  • the transaction involves artificial tax avoidance arrangements as defined in Part 5 of the RSTPA 2014 – see RSTP8001). ​

If we refuse the application we must notify the buyer, setting out the grounds for the refusal and the amount of tax due in consequence of our refusal. The refusal notice is treated as an assessment of tax on which interest accrues from the date of issue of the notice until payment of the tax is made. 

The buyer has a right to request a review of decision to refuse the application. The buyer also has a statutory right of appeal to The Scottish Tribunals which may be exercised if a review is not requested or you are not satisfied with the outcome of a review. 

On appeal to the tribunal, the deferred tax is still due and payable but we will postpone the collection of the disputed deferral amount until the appeal is settled.

Ref ID


Archive Date

Last updated