This relief is provided by the provisions of schedule 15 to the LBTT(S)A 2013.
Description of relief
As a condition of granting planning permission to a developer, a planning authority might require the developer to provide certain amenities for the community under section 75 of the Town and Country Planning (Scotland) Act 1997.
These requirements are known as 'planning obligations'. Such planning obligations may be modified in accordance with sections 75A and 75B of the same Act. In most cases the developer transfers the building to the local authority to run once it has been completed.
For example, if a road is built as a planning obligation within a wider development, the developer may transfer it to the local highways authority. Subject to certain conditions, this relief is designed to relieve a public body from LBTT when it acquires a chargeable interest where the seller is complying with the planning obligation.
All three of the qualifying conditions must be met before the relief can be claimed:
- the public body must obtain the chargeable interest from the developer in order to comply with a planning obligation imposed on the developer;
- the buyer must be a public body; and
- the effective date of the transaction must be within a period of 5 years beginning on the date of the planning obligation or the date that it was modified.
For the purposes of the relief, a ‘public body’ means:
- a local authority;
- the common services agency established under section 10(1) of the National Health Service (Scotland) Act 1978;
- a health board established under section 2(1)(a) of that Act;
- Healthcare Improvement Scotland established under section 10A of that Act;
- a special health board established under section 2(1)(b) of that Act;
- any other body that is the planning authority for any of the purposes of the planning Acts within the meaning of the Town and Country Planning (Scotland) Act 1997.
Claiming the relief
To claim this relief see the guidance on 'How to make a LBTT return and pay tax' which is available separately on our website.