An application to defer the LBTT payable on a transaction may be made by the buyer where the 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.
The application to defer payment of tax must be made in writing to us at the contact address on our website (clearly marking the letter ‘Application to defer payment of LBTT’ and providing a contact telephone number) on or before the due filing date for the LBTT return (see LBTT1000). It will not be accepted if it is made on a later date.
If we approve your deferral application we will give you a deferral reference number which you should enter on the ‘Deferral reference’ field on the LBTT return (or any further return you make in relation to the same transaction). We recommend you make your application to us at least 10 working days before you intend to make your return.
Where an application is made, the tax in relation to that transaction remains due as if there had been no application (and if relevant no appeal) but payment of tax is postponed until we reach a decision on the application. If we then refuse the application to defer the payment of tax, the tax due is determined as if were charged by a Revenue Scotland assessment and as if notice of the assessment was made on the date of refusal to defer payment of tax.
An application to defer payment of tax does not affect the buyer's obligation to pay LBTT on any chargeable consideration that:
- has already been paid when the application is made; or
- is not contingent and is known at the time the application is made.
Where the buyer makes such a payment of tax, rules apply requiring a return when a contingency ceases, consideration is ascertained and where less tax is payable in those circumstances. 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 of payment of tax is not available to consideration that consists of rent.