A buyer can make an application to us to defer the LBTT payable on a land transaction where:
- the whole or part of the chargeable consideration is contingent or uncertain; and
- the chargeable consideration becomes payable more than six months after the effective date of the transaction.
This could include the situation where additional consideration is payable by the buyer if planning permission is obtained after the sale.
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 not contingent or uncertain and the amount of which is known at the time the application is made.
Delayed consideration is still consideration and there is no discount allowed for postponement.
Deferral can apply to consideration which is payable before six months if there is any part of the uncertain or contingent consideration payable after six months.
Deferral is not available for consideration that is uncertain because the amount is ascertainable but has not yet been 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 (see LBTT4019).
Further guidance on applications for deferral of payment is available as follows:
- Availability of deferral of payment of tax and making the application - LBTT4017
- Content of the application to defer payment of tax where there is contingent or uncertain consideration - LBTT4018
- When an application for deferral is accepted by Revenue Scotland - LBTT4019
- Refusal by Revenue Scotland of the application for deferral - LBTT4020