As a reminder, when Land and Building Transaction Tax ("LBTT") was introduced in Scotland from 1 April 2015, one of the key differences to SDLT was the requirement to file 3 yearly lease review returns and a review return when a lease is assigned or terminated.
From 1 April 2018 LBTT will have been in place for 3 years and therefore clients who have entered into LBTT leases or have been assigned an LBTT lease will need to comply with this additional ongoing reporting obligation.
The idea of the 3 yearly returns is to capture any increases or decreases in rent and any additional tax paid on the increase/repaid on decrease. However note that even if there are no changes to a lease there is still a 3 yearly reporting requirement.
The reminders to submit these 3 yearly returns are being sent to the tenants (rather than their advisers or agents). If you have entered into any LBTT leases in the last 3 years, please bear in mind this ongoing requirement.
If you have any questions on the above or require any LBTT advice/assistance please get in touch with one of the LBTT team members as follows:.
