Land and Buildings Transaction Tax - Green Freeports Relief: consultation on proposed legislation

3. Claiming the Relief

Claims giving effect to relief

3.1 As with all reliefs, the Scottish Government intends for relief to be claimed via the LBTT return. Relief will be required to be claimed in the first LBTT return made in relation to a transaction.

3.2 Relevant provisions are set out at article 2(2) of the draft Order set out in Annex A. The provisions will amend section 27(1) of the LBTT Act to include reference to new schedule 16D.

Questions

18. Do you agree that the provisions as drafted achieve the policy intent?

19. If not, what amendments would you propose to the draft legislation and on what basis?

Deadline for returns

3.3 Qualifying transactions will be notifiable transactions under section 30 of the LBTT Act, requiring a return to be made within the time limit set out in section 29.

Additional return required where relief is withdrawn

3.4 In the event that relief is withdrawn under the clawback provisions, a further return will be required to be made.

3.5 Relevant provisions are set out at article 2(3) of the draft Order set out in Annex A. The provisions will amend section 33(1) of the LBTT Act to incorporate details of the new schedule giving effect to the relief, with section 33(4) amended to direct users to the provisions of that schedule.

Questions

20. Do you agree that the provisions as drafted achieve the policy intent of requiring an additional return where relief is withdrawn?

21. If not, what amendments would you propose to the draft legislation and on what basis?

Interest payable where relief is withdrawn

3.6 The Scottish Government intends to amend the Revenue Scotland and Tax Powers Act (Interest on Unpaid Tax and Interest Rates in General) Regulations 2015 to provide that, where relief is withdrawn, interest will be payable against any resulting tax liability. Interest will be treated as accruing from the 'relevant date', that being the date of the first return made under section 27 of the LBTT Act.

3.7 Relevant provisions are set out at article 3 of the draft Order set out in Annex A. The draft provisions amend regulation 3 to include withdrawal of relief under new schedule 16D as a 'disqualifying event' and amend regulation 4 to include reference to new schedule 16D.

Questions

22. Do you agree that the provisions as drafted achieve the policy intent of requiring interest to be paid where relief is withdrawn?

23. If not, what amendments would you propose to the draft legislation and on what basis?