PART 2Key concepts
CHAPTER 2Provision about particular transactions
General rules for contracts requiring conveyance
I38Contract and conveyance
1
This section applies where a contract for a land transaction is entered into under which the transaction is to be completed by a conveyance.
2
A person is not regarded as entering into a land transaction by reason of entering into the contract.
3
But see sections 9 and 10.
I2C49Completion without substantial performance
1
If the transaction is completed without previously having been substantially performed, the contract and the transaction effected on completion are treated as parts of a single land transaction.
2
In this case the effective date of the transaction is the date of completion.
I1C310Substantial performance without completion
1
If the contract is substantially performed without having been completed, the contract is treated as if it were itself the transaction provided for in the contract.
2
In this case the effective date of the transaction is when the contract is substantially performed.
3
Where subsection (1) applies and the contract is subsequently completed by a conveyance—
a
both the contract and the transaction effected on completion are notifiable transactions, and
4
Where subsection (1) applies and the contract is (to any extent) afterwards rescinded or annulled, or is for any other reason not carried into effect, the tax paid by virtue of that subsection is to be (to that extent) repaid by the Tax Authority.
5
That repayment must be claimed by amendment of the land transaction return made in respect of the contract.
F15A
For the period allowed for amendment of returns, see section 83 of the Revenue Scotland and Tax Powers Act 2014 (asp 16).
6
Where paragraph 25 of schedule 19 (leases) applies, it applies in place of this section.