The Scottish government is consulting until 12 May 2023 on a new relief from land and buildings transaction tax for qualifying non-residential land transactions in designated green freeport tax sites.
The consultation documentation confirms that the relief will be ‘broadly equivalent’ to the SDLT relief in freeport tax sites in England, and will be available for a period of five years.
The draft legislation proposes that full relief will apply where at least 90% of the chargeable consideration is attributable to qualifying green freeport land, with partial relief given on a ‘just and reasonable basis’ where at least 10% of the consideration is attributable.
Where relief has been claimed, but the land in question ceases to be used in a qualifying manner (for example, the land is instead developed for residential use), Revenue Scotland will be able to withdraw the relief (in line with the general policy for green freeports to promote long-term investment).
The draft legislation will insert a new Sch 16D into the Land and Buildings Transaction Tax (Scotland) Act 2013, setting out the framework for the relief which is expected to apply for transactions with an effective date falling between 1 July 2023 and 30 June 2028.
The Scottish government is consulting until 12 May 2023 on a new relief from land and buildings transaction tax for qualifying non-residential land transactions in designated green freeport tax sites.
The consultation documentation confirms that the relief will be ‘broadly equivalent’ to the SDLT relief in freeport tax sites in England, and will be available for a period of five years.
The draft legislation proposes that full relief will apply where at least 90% of the chargeable consideration is attributable to qualifying green freeport land, with partial relief given on a ‘just and reasonable basis’ where at least 10% of the consideration is attributable.
Where relief has been claimed, but the land in question ceases to be used in a qualifying manner (for example, the land is instead developed for residential use), Revenue Scotland will be able to withdraw the relief (in line with the general policy for green freeports to promote long-term investment).
The draft legislation will insert a new Sch 16D into the Land and Buildings Transaction Tax (Scotland) Act 2013, setting out the framework for the relief which is expected to apply for transactions with an effective date falling between 1 July 2023 and 30 June 2028.
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")