The acquisition of an exempt interest, namely a security interest such as the creditor’s interest in a standard security, falls outside the charge to LBTT.
Furthermore, there are seven types of land transactions which are specifically exempt from LBTT. No tax is charged on these transactions and no LBTT return is required to be made to us.
- no chargeable consideration – see LBTT3003;
- acquisitions by the Crown – see LBTT3004;
- residential leases and licences – see LBTT3005;
- transactions in connection with a divorce – see LBTT3006;
- transactions in connection with the dissolution of a civil partnership - see LBTT3007;
- assent and appropriations by personal representatives – see LBTT3008; and
- variation of testamentary dispositions etc. - see LBTT3009.
Any fraudulent arrangements concerning exemptions will be treated as tax evasion and referred for criminal investigation and prosecution. Any artificial arrangements concerning exemptions are likely to fall foul of the Scottish General Anti-Avoidance Rule (see RSTP8001).