The Land and Buildings Transaction Tax: proposed relief for Green Freeports

Closed 12 May 2023

Opened 17 Mar 2023


The Scottish and UK governments have worked together constructively to develop a Green Freeport model that reflects the unique conditions in Scotland, and ensures businesses, ports and communities across Scotland can benefit from the Green Freeport opportunity.

On 13 January 2023, following a rigorous assessment and selection process, the Scottish and UK governments announced that Inverness and Cromarty Firth Green Freeport and Forth Green Freeport had been selected as Green Freeports.

In the 2022 Green Freeport bidding prospectus, the Scottish Government set out the intent to offer a support package of tax reliefs and other economic levers to support Green Freeports in achieving the following objectives:

  1. promote regeneration and high-quality job creation
  2. promote decarbonisation and a just transition to a net zero economy
  3. establish hubs for global trade and investment
  4. foster an innovative environment

In addition to the core Green Freeport objectives, the overarching policy intent of Land and Buildings Transaction Tax (LBTT) relief is to promote long-term investment in underdeveloped tax sites with economic potential. The Scottish Government accordingly expects that, in a number of instances, this would be one of the first tax reliefs claimed within a Green Freeport site.

This consultation seeks views on proposed legislative amendments to the Land and Buildings Transaction Tax (Scotland) Act 2013 (“the LBTT Act”), including the addition of a new schedule 16D to the Act. These will provide a relief from LBTT for qualifying non-residential transactions within a designated Green Freeport tax site.

Read the consultation paper

Why your views matter

This consultation will run for 8 weeks and offers an opportunity to comment on the draft secondary legislation, so as to ensure that it provides for the intended policy intent and does not create unintended consequences.

Views are also sought on a range of issues in order to inform consideration of any relevant impact assessments. Responses are encouraged from all interested parties.

In addition to inviting written responses, the Scottish Government intends to meet with relevant stakeholders to discuss the proposed amendments.

The Scottish Government will carefully consider all responses to the consultation, prior to finalising decisions on legislation for introduction to the Scottish Parliament. 


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