Revenue Scotland rolls out update to online tax system for LBTT Lease Review Returns

Revenue Scotland has introduced updates to the Scottish Electronic Tax System (SETS) so that tenants holding a non-residential lease can meet their legal obligations under the Land and Buildings Transaction Tax (Scotland) Act 2013.

The legislation states that LBTT tenants must submit a further LBTT tax return:

LBTT was introduced on 1 April 2015 so the first three-year review date for leases subject to LBTT is 1 April 2018.

Revenue Scotland head of tax, Chris Myerscough, said: “The Land and Buildings Transaction Tax (Scotland) Act 2013 includes a requirement for the tenant in a lease which has been subject to an LBTT return to submit a further return following every third anniversary of the lease, with the first review date being 1 April 2018.

“These further returns will inform Revenue Scotland of any changes that have occurred since the last LBTT return was submitted and enable a review of the amount of tax chargeable over the lifetime of the lease so that the tenants pay the correct amount of tax.”

Returns must be filed within 30 days of the three-year anniversary of the lease to avoid a penalty. The 30-day period is designed to give tenants enough time to submit the return.