LBTT4022 - Further LBTT return where a relief is withdrawn

LBTT guidance on the further LBTT return which must be made when a relief is withdrawn.

LBTT4022 - Further LBTT return where a relief is withdrawn

Where tax relief was claimed in respect of:

  • certain acquisitions of residential property – see LBTT3012, LBTT3013 and LBTT3014;
  • transfer of multiple dwellings – see LBTT3015;
  • alternative finance investment bonds – see LBTT3021;
  • group relief – see LBTT3025;
  • reconstruction and acquisition relief – see LBTT3029;
  • charities relief – see LBTT3035; or
  • sub-sale development relief – see LBTT3044,

then the buyer may have to make a further LBTT return to us where relief is withdrawn and a relevant event occurs. The various relevant events that may lead to a withdrawal of a relief are described in the guidance for each of the reliefs, and are also listed in section 33(4) of the LBTT(S)A 2013.

Any further return must be made within 30 days of the day after that relevant event occurring. The date the return is required to be made by is the filing date(see LBTT1000).

Note: The date on which the relevant occurs is the ‘relevant date’ for the purposes of the ‘relevant date’ field in the LBTT return.

The LBTT return must contain an assessment of the amount of tax now due, which is the amount of tax that would have been chargeable in relation to the transaction had the relief not been available. Any additional tax due must be made at the same time as the LBTT return is made.

Guidance on How to make an LBTT return and pay tax is available separately on our website.

Once the LBTT return has been made, subject to certain restrictions it can be amended up to 12 months after the filing date - see LBTT4006.

LBTT(S)A 2013 section 33

LBTT(S)A 2013 section 40

A buyer who fails to make a LBTT return to us by the filing date is liable to a penalty (see RSTP3005). If the LBTT return contains an inaccuracy, the buyer may be liable to a penalty (see RSTP3011).

A buyer who fails to pay tax prior to the expiry of 30 days after the date payment is due (the day the LBTT return is made) is liable to a penalty (see RSTP3008). Interest will be charged however on any unpaid tax (see RSTP4002).

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