Section 43 of the Land and Buildings Transaction Tax (Scotland) Act 2013 (LBTT) of the Act came into force on 1 April 2015, however the tax legislation that applies is dependent on the effective date of the land transaction.

Where the effective date of the land transaction is on or after 1 April 2015, the requirements of LBTT under section 43 of the Land and Buildings Transaction Tax (Scotland) Act 2013 will apply.

However, where the effective date of the land transaction is prior to 1 April 2015 the requirements of Stamp Duty Land Tax (SDLT) under section 79 of the Finance Act 2003 will apply. This requires that a recordable deed evidencing a land transaction which must be notified to Her Majesty's Revenue and Customs (HMRC) must not be registered in any register maintained by the Keeper of the Registers of Scotland, unless it is accompanied by an Stamp Duty Land Tax (SDLT) certificate.

SDLT is a tax which is sometimes payable on a limited range of transactions with the ownership of land or certain rights in land. These transactions must be notified to HMRC, who issue a certificate confirming that the transaction has been notified. The certificate issued will be an SDLT 5 Certificate or a Submission Receipt and Electronic SDLT 5.

As the "Effective date" usually means the date of completion of a transaction, the numbers of applications requiring SDLT evidence will diminish.

Examples

Unusual cases - where it may be unclear if SDLT evidence is required

A renunciation of lease where a premium is paid of £40,000 or more from landlord to tenant (not tenant to landlord)
A deed relating to residential land, either creating a servitude right, a pre-emption or a liferent or a deed discharging,waiving or varying such a right or encumbrance where there is a consideration of £125,000 or more
A deed relating to non-residential or mixed use land, either creating a servitude right, a pre-emption or a liferent or a deed discharging, waiving or varying such a right or encumbrance where there is a consideration of £150,000 or more