Important tax information for tenants of commercial property

Devolved tax legislation implemented on 1 April 2015 mean that some tenants 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 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 further information please visit www.revenue.scot/leases.