Devolved tax legislation implemented on 1 April 2015 means that some tenants of commercial property in Scotland must, by law, submit a new tax return to Revenue Scotland every three years to ensure they have paid the correct amount of land and buildings transaction tax (LBTT). The first time a 3 year lease review return became due was therefore 2018.
A return has to be submitted:
- every three years from the effective date of the lease
- at the point where the lease is assigned
- at the point where the lease is terminated
It is the responsibility of the tenant to submit the return – even if the lease has not changed or if no tax is due. Failure to do so will result in a penalty.
For more information visit Revenue Scotland.