The buyer is responsible for paying any tax due at the same time as the LBTT return for the notifiable transaction is made to us (see LBTT4004). For this purpose, tax is treated as paid if arrangements satisfactory to us are made for the payment of the tax (see LBTT4008).
Guidance on How to make an LBTT return and pay tax is available separately on our website.
An application may be made to us to defer payment of tax where the amount of consideration is contingent or uncertain (see LBTT4016).
A buyer who fails to pay tax prior to the expiry of 30 days after the date payment is due is liable to a penalty (see RSTP3008). Interest will be charged however on the amount of any unpaid tax from the filing date until the date it is paid (see RSTP4002).
If two or more buyers are acting jointly, they are jointly and severally liable for the tax although it can be fully discharged by any one of them. A single LBTT return has to be made and all buyers should be included.
When a partnership acquires a chargeable interest, all partners at the effective date and any person who becomes a partner after the effective date are responsible partners in relation to the transaction. A representative partner(s) may be appointed to deal with LBTT returns. A list of all partners must be included in the LBTT return. However, it is only the appointed representative who needs to authorise submission of the return (see part 3 of schedule 17 to the LBTT(S)A 2013).
Where trustees of a settlement are liable to make a payment of tax or any associated payment including interest or penalties, such payment may be made by any one or more of the responsible trustees. Responsible trustees are those who are trustees at the effective date of the transaction and anyone who becomes a trustee subsequently.
Any one or more of the responsible trustees can make an LBTT return and such persons are called ‘the relevant trustee’ (see paragraph 16 of schedule 18 to the LBTT(S)A 2013).