Land or buildings may be gifted or the ownership transferred to another person for no 'chargeable consideration'. This means that no money (or money’s worth) changes hands, and there is no other consideration which has a monetary value. In such cases the transaction is exempt from LBTT. But where a land transaction involves the buyer both being gifted property and assuming existing debt (such as assuming the liability of a mortgage), then the debt assumed is chargeable consideration for LBTT purposes (see LBTT2003).
This exemption does not apply where the buyer is a company and either the seller (whether an individual or company) is connected with the buyer or some or all of the consideration consists of the issue or transfer of shares in a company with which the seller is connected – see LBTT2007.
LBTT(S)A 2013 schedule 1 paragraph 1
Ref ID
LBTT3003
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