LBTT3038 - Relief for certain acquisitions by Local Authorities including compulsory purchase
The following schedules provide for the relief:
Schedule 6A LBTT(S)A 2013 with effect from 1 April 2024.
Description of relief
Schedule 6A Relief for certain acquisitions by Local Authorities
Relief is available on a land transaction where the buyer, a Local Authority meets either of the qualifying conditions, with effect from 1 April 2024.
Qualifying relief conditions:
- the transaction is in connection with the provision of housing accommodation.
per section 2 of the Housing (Scotland) Act 1987
(Powers of local authority to provide housing accommodation)
or
- funding for the transaction is through a grant or other financial assistance.
under section 2 of the Housing (Scotland) Act 1988
(General functions of Scottish Homes)
Schedule 14 Relief for certain compulsory purchases
Separate conditions apply to compulsory purchase orders.
Compulsory purchase orders allow the purchase of property this may be with or without agreement. Where the purchase is for development by another party. The other party is usually a developer.
As there are two transactions, in the absence of the relief, there would be two amounts of LBTT to pay. However, relief from LBTT may be due for the first transaction.
Relief conditions:
- the purchase is by a local authority
- the purchase must be through a Compulsory Purchase Order
- the order must comply with section 189 of the Town and Country Planning (Scotland) Act 1997
- for the development, redevelopment, or improvement of land
or
- any other purpose needed which is in the interests of the proper planning of an area of land
- the developer must be a third party
Note: If the developer is the local authority, the relief is not available.
Claiming the reliefs
Relief can only be claimed per LBTT(S)A 2013, Part 3, 27(2) by:
- including a claim for relief in the original LBTT return
- making an amendment to the LBTT return within the amendment period
For guidance on how to claim this relief see:
'How to make a LBTT return and pay tax'
Ref ID
LBTT3038
Archive Date
Last updated