Important tax information for tenants of commercial property

The Land and Buildings Transaction Act (Scotland) 2013 (LBTT)

Devolved tax legislation implemented on 1 April 2015 mean that some tenants in Scotland must, by law, submit a new tax return to Revenue Scotland every three years to ensure they have paid the correct amount of LBTT.  The first time a 3 year lease review return became due was therefore 2018.

A return has to be submitted:
• every three years from the effective date of the lease;
• at the point where the lease is assigned;
• at the point where the lease is terminated.

It is the responsibility of the tenant to submit the return – even if the lease has not changed or if no tax is due. Failure to do so will result in a penalty.
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