LBTT7006 Property investment partnerships (PIP)

Property investment partnerships (PIPs) are partnerships whose sole or main activity is investing or dealing in chargeable interests (including but is not restricted to carrying out construction operations on the land in question).

Chargeable interests include any interest which would be chargeable if it were in Scotland, but relates to land outwith Scotland. Partnerships holding such interests can fall within the definition of property investment partnership.

LBTT7005 Transfer involving leases

Where whole or part of the chargeable consideration for the transaction is rent under Parts 4 or 5, the leases schedule takes effect (Schedule 19) with the following modifications.

Transactions include:

  • partnerships entering into a lease as tenant
  • a partnership granting a lease to a partner

The chargeable consideration is reduced to take account of the partnership shares and interests of the partners involved in the lease if they had an interest prior to the lease agreement.

LBTT7004 Transfer between partnerships

Where there is a transfer of a chargeable interest from a partnership to a partnership and both Parts 4 & 5 apply, the modified calculation of chargeable consideration is not carried out. Instead, the chargeable consideration in such cases is the larger of the calculated amount using the relevant SLP for:

  1. a transfer into a partnership (Part 4)
  2. a transfer from a partnership (Part 5)

LBTT7003 Transfer out of a partnership

The transfer of a chargeable interest from a partnership under Part 5.

Certain rules apply when a chargeable interest is transferred from a partnership to:

  • a person who is or was a partner, or
  • a person connected with a person who is of has been one of the partners

Property that was partnership property before the partnership was dissolved or otherwise ceased to exist is treated as remaining partnership property until it is distributed.

LBTT7002 Transfer of chargeable interest to a partnership

The transfer of a chargeable interest to a partnership under Part 4.

Certain rules apply when a chargeable interest is transferred to a partnership by:

  • a partner
  • a person in return for an interest in the partnership i.e. who will become a partner; or
  • a person connected to a partner or person who becomes a partner as a result or in connection with the transfer

A property-investment partnership may elect to disapply these rules. See more at LBTT7006 Property investment partnerships (PIP), Election by a PIP to disapply part 4 rules.

LBTT7001 General provisions

Transactions involving a partnership are subject to certain rules, including the definition of a partnership, continuity of a partnership and the adaptation of the calculation of chargeable consideration. These rules apply to a transfer:

  • to a partnership
  • from a partnership
  • between partnerships.

Definition of a partnership

A partnership for the purposes of LBTT is taken as the following:

Monthly Land and Buildings Transaction Tax (LBTT) statistics: May 2025

Key points

  • Residential LBTT, excluding Additional Dwelling Supplement (ADS), was £36.7m in May 2025. This was 5% lower than in April 2025 (£38.6m) and 4% lower than in May 2024 (£38.1m).
  • Non-residential LBTT, excluding ADS, was £16m in May 2025. This was 2% lower than April 2025 (£16.3m) and 12% lower than May 2024 (£18.1m). Non-residential revenues are highly variable between months, due to the effect of small numbers of high value transactions.

Building Safety Levy (Scotland) Bill introduced to the Scottish Parliament

The Scottish Government has announced the introduction of a Scottish Building Safety Levy Bill. This will provide funding for Scotland’s Cladding Remediation Programme, to tackle unsafe cladding on buildings.

Revenue Scotland has worked closely with the Scottish Government and stakeholders during the development phase of the Bill and will continue to provide advice during the passage of the Bill through Parliament.

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