The Act Overview
7.The Act comprises 71 sections and 20 schedules and is divided into 8 Parts as follows:
	Part 1 establishes the LBTT,
	Part 2 makes provision for the key concepts underlying the tax including:which transactions are land transactions;which interests are, and which are not, chargeable interests in land;when a chargeable interest is acquired and the treatment of transactions involving contracts which require to be completed by conveyance as well as other kinds of transaction;which land transactions are, and which are not, chargeable transactions; andwhat is, and what is not, chargeable consideration in relation to a chargeable transaction.
	Part 3 makes provision for:the amount of tax payable;relief from the tax; andwho is liable to pay the tax.
	Part 4 provides for land transaction returns and for the payment of the tax.
	Part 5 contains provision about the application of the Act in relation to certain types of buyer, including companies, partnerships and trusts.
	Part 6 contains provision about the application of the Act in relation to leases and licences.
	Part 7 contains general provision, including provisions on the Tax Authority and definitions of expressions used in the Act.
	Part 8 contains provisions on subordinate legislation powers and commencement as well as other final provisions.
8.LBTT is a tax on land transactions. A “land transaction” is the acquisition of a chargeable interest (i.e. a real right or other interest in or over land which is not exempt). If a transaction is notifiable (i.e. it is not an exempt transaction and the consideration is above certain thresholds), then a land transaction return must be made, together with payment of any tax due, to the Tax Authority. The amount of tax due is calculated on a progressive basis by reference to the consideration paid but this is subject to special rules for certain cases and the availability of reliefs for certain transactions.
9.The operation of LBTT is described in the flow-chart diagram and the example below.