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

Closes 2 Aug 2018

Opened 3 May 2018

Overview

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 We Are Consulting

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.

Give us your views

Audiences

  • People of Scotland

Interests

  • Business, Industry and Innovation
  • Economy