Land and Buildings Transaction Tax (Relief from Additional Amount) (Scotland) Bill

# Land and Buildings Transaction Tax (Relief from Additional Amount) (Scotland) Bill Scotland's Land and Buildings Transaction Tax (LBTT) includes an additional amount—a surcharge on purchases of residential properties that are not a buyer's main residence, such as second homes and buy-to-let investments. This surcharge was introduced to help address housing affordability and reduce demand for non-primary residential properties. However, certain groups of buyers have faced genuine hardship or practical difficulties under this regime, creating pressure for targeted relief. The bill seeks to address cases where the additional amount creates unfair outcomes or prevents legitimate transactions from proceeding. The bill establishes a mechanism for granting relief from the additional amount of LBTT in specified circumstances where it would be inequitable to apply the full surcharge. It introduces criteria and procedures that allow the Scottish Government or relevant officials to exempt qualifying purchases from the additional tax burden. The exact circumstances triggering relief—such as inherited properties, relationship breakdowns, or involuntary changes in residential status—are defined within the legislation. This targeted approach aims to preserve the policy objectives of the additional amount while preventing unintended consequences for buyers in exceptional situations, without requiring a wholesale revision of the LBTT surcharge regime itself.

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