A Consultation on Land and Buildings Transaction Tax - Property Investment Funds

Closed 3 Aug 2018

Opened 3 May 2018

Results updated 12 Dec 2018

Following this consultation the Scottish Government will, subject to Parliamentary approval, introduce two reliefs from LBTT for property investment fundsOnce the nature of the UK’s withdrawal from the EU becomes clear - there will be a consultation launched in 2019 on a draft Scottish Statutory Instrument (SSI) that will provide for properties to be seeded (without an LBTT charge) into a CoACS or PAIF and for the trading of units in Co-owned Authorised Contractual schemes to be exempt from an LBTT charge.


Published responses

View submitted responses where consent has been given to publish the response.


To seek opinions and commentary on the potential introduction of reliefs from LBTT to bring parity with Stamp Duty Land Tax (SDLT) for certain types of authorised property investment funds.

Specifically a relief for the ‘seeding’ (initial transfer) of property assets into an Open Ended Investment Company (OEIC) or Co-Ownership Authorised Contractual Scheme (CoACS) and a relief for when units in CoACS are traded.

Why your views matter

Stakeholders in the property and investment management sectors have approached the Scottish Government to call for these reliefs. They relate to investment in property assets and their introduction would bring parity with the position for SDLT.

If no changes are made to the LBTT legislation in relation to this area industry representatives suggest that it may lead investment and pension funds to divest of Scottish properties.  The Scottish Government wishes to gain a better understanding of the future impacts of not having these reliefs, or alternatively, the impacts should they be introduced.  This includes understanding the potential for tax avoidance and linkages between these types of financial investment and real economic growth.

Download the consultation paper.

What happens next

We will analyse responses and asses the merit of amending legislation to allow for reliefs for the seeding of properties into a PAIF and CoACS and trading of units within CoACS.


  • Business, Industry and Innovation
  • Economy