Revenue Scotland will treat all lease review returns with a relevant date between 21 February 2020 and 31 August 2021 as being due within the COVID-19 period.
1. Why are you issuing me with a penalty and reducing it to nil?
Your penalty has been reduced to nil as you were late submitting your lease review return / paying on time, however we understand that the COVID-19 pandemic may have made it difficult for you to submit your lease review return / pay on time. Under our legislation we must notify you of the penalty which we have now been reduced to nil.
You must ensure you submit your next three year review return on time. You can find more information on how to do that at How to make an online LBTT lease review return (tenants) | Revenue Scotland.
S177 special reduction in penalty under Chapter 2 https://www.legislation.gov.uk/asp/2014/16/section/177
2. Why different treatment for 3 year lease reviews?
Unlike with conveyance / first time leases where a transaction is taking place (purchase of a property) with 3 year reviews there is no underlying transaction. These types of returns are non-residential and it is likely that such businesses will not have access to their premises and will have been restricted as a result of the national / local lockdowns, and access to professional advice for these infrequent filing obligations may have been limited.
If you feel you have a reasonable excuse why your penalty should be not have been issued. Revenue Scotland may reduce, suspend or cancel a penalty for failing to file your return or pay tax on time if you satisfy us that you had a reasonable excuse and have since met your obligation. For more information on reasonable excuse in relation to penalties see RSTP6009 – Reasonable excuse
If you feel you have a reasonable excuse you should email: firstname.lastname@example.org
Lease reviews not received - Penalty Suspended
3. Why is my penalty being suspended?
We understand that the COVID-19 pandemic may have made it difficult for you to submit your lease review tax return on time therefore we are now giving you an extension to this period to submit your return. You must submit your return by the deadline stated in your letter your penalty will be reduced to nil. You must also ensure you submit your next three year review return on time.
4. Will you acknowledge my return once my suspension has been met?
Yes, once your return has been received you will receive a letter stating the suspension terms have been met and you no longer have an outstanding penalty.
5. What if I do not submit my return by end of suspension?
If you do not submit your return by the end of the suspension the penalty will become payable, you will have 30 days to pay this. You will be liable for any further penalties that are due on this transaction.
6. I was in lockdown because of my business type, but not a national lockdown, ie it was outside the defined COVID dates. Can I take advantage of the relaxation?
The relaxation only applies to the COVID dates. However, if your business was affected by being closed down and this was the reason why you didn’t submit your return on time then Reasonable Excuse may apply to you. RSTP6009 - Reasonable excuse for late notice of review or appeal | Revenue Scotland