# Land and Buildings Transaction Tax (Scotland) Act 2013, Paragraph 7: Use of land in a qualifying manner


(1) For the purposes of this schedule, transaction land is used in a qualifying manner if it is used in one or more of the following ways—
(a) it is used by the buyer or a connected person in the course of a commercial trade or profession,
(b) it is developed or redeveloped by the buyer or a connected person for use (by any person) in the course of a commercial trade or profession,
(c) it is exploited by the buyer or a connected person, in the course of a commercial trade or profession, as a source of rents or other receipts (other than excluded rents).
(2) But land is not used in a qualifying manner to the extent that it is—
(a) used as a dwelling or as the garden or grounds of a dwelling (including any building or other structure on such land),
(b) developed or redeveloped to become residential property,
(c) exploited as a source of rents or other receipts payable by a person using the land as a dwelling or as the garden or grounds of a dwelling, or
(d) held (as stock of the business) for resale without development or redevelopment.
(3) For the purposes of this paragraph, use of land in the course of a commercial trade or profession includes use of land for a purpose that is ancillary to the use of other land which—
(a) is situated in a green freeport tax site, and
(b) is being used, or developed or redeveloped, in the course of a commercial trade or profession.
(4) The references in this paragraph to doing something in the course of a commercial trade or profession include doing something in the course of a property rental business.
(5) In this paragraph—
“commercial”, in relation to a trade or profession, means carried on—
(a)on a commercial basis, and
(b)with a view to profit,
“excluded rents” means rents within any of classes 2 to 6 in the table in section 605(2) of the Corporation Tax Act 2010,
“property rental business” means a property business as defined in Chapter 2 of Part 3 of the Income Tax (Trading and Other Income) Act 2005.

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Source: https://www.legislation.gov.uk/asp/2013/11/schedule/n1/paragraph/7 (the official version)
Page: https://openlegislation.uk/land-and-buildings-transaction-tax-scotland-act-2013/schedule-n1/paragraph-7
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.