Land and buildings transaction tax - property investment funds: consultation

Summary Of Questions

Property Investment in Scotland and the UK

Question 1: Does this chapter provide an accurate picture of the Scottish property fund and investment landscape?

Question 2: In terms of the size of managed property fund assets in Scotland, how many funds do you estimate hold Scottish property assets, what is the total value of these funds and how large (%) is their exposure to Scottish property?

Seeding Relief

Question 3: Do you consider that the Scottish Government should introduce a seeding relief for PAIF’s and CoACS?

Question 4: Please briefly describe any positive or negative impacts that would accompany LBTT parity with SDLT for a seeding relief.

Question 5: With regards to a seeding relief - how would a ‘do nothing’ approach on the part of the Scottish Government affect your business and future business decisions?

Question 6: If the Scottish Government were to proceed with a LBTT seeding relief, are there any aspects of the SDLT arrangements which you believe should be changed if replicated for LBTT purposes?

LBTT Treatment of Co-owned Authorised Schemes

Question 7: Do you agree that the Scottish Government should introduce parity with SDLT by providing a relief for the exchange of CoACS units?

Question 8: Please briefly describe any positive and negative impacts that would accompany such a relief.

Question 9: With regards to a CoACS relief - how would a ‘do nothing’ approach on the part of the Scottish Government affect your business and future business decisions?

Question 10: Do you have any other comments not covered by the previous questions around providing a relief for the exchange of CoACS Units?

Tax Avoidance

Question 11: Please identify and describe any impacts on UK taxes (non- SDLT) that could occur following the proposed amendment to LBTT.

Question 12: Can you identify any potential unintended impacts or effects on the current LBTT regime through providing parity with SDLT on the treatment of CoACS or through providing a seeding relief for PAIFs and CoACS?

Question 13: If the Scottish Government introduced a relief, do you believe it should introduce GDO rules for CoACS or do you believe another test could be equally as effective in combating artificial tax avoidance?

Question 14: If the Scottish Government introduced the proposed reliefs, should it introduce general portfolio tests with the same thresholds as the UK (based on the value of pan UK property) or should a more Scottish orientated threshold/measure be used?

Question 15: If the Scottish Government introduced the proposed reliefs, should it legislate for a percentage of ownership test in the same manner as the rest of the UK?

Question 16: Should the Scottish Government, if introducing the proposed reliefs, implement the same claw back provisions as introduced under the UK’s SDLT regime? If not, what conditions should be applied and how would you suggest recovery of the tax should operate?

Question 17: Do you believe that the fund managers and scheme operators should be liable for the recovery of any tax liability resulting from these potential reliefs?

Question 18: Please identify and describe any other areas of potential tax avoidance that you think could arise by amending LBTT legislation to provide a seeding relief and change LBTT treatment of CoACS?

Question 19 : If seeding relief was introduced in Scotland, should it just apply to non-residential property?

Effects on Equal Opportunities, Human Rights, Island Communities, Local Government, Sustainable Development

Question 20: Would LBTT parity with SDLT regarding PAIFs and CoACS, in any way, impact upon equal opportunities, human rights, island communities, privacy and/or sustainable development in Scotland?