The Land and Buildings Transaction Tax (Green Freeports Relief) (Scotland) Order 2023 (SSI 2023/Draft)

Overview

The Scottish and UK governments announced in January 2023 that the Inverness and Cromarty Firth and Forth Green freeports had been jointly selected to become Scotland’s first “Green Freeports”. 

The Scottish Government says Green Freeports are designed to boost innovation and inclusive growth within communities while:

• supporting Fair Work First practices
• creating new green jobs
• upholding the highest environmental protections
• supporting economic transformation.

As part of its approach to Green Freeports, the Scottish Government proposes to provide relief from Land and Building Transaction Tax (LBTT) for certain types of transactions within a Green Freeport designated tax site.

The relief will be either a full or partial reduction in the amount of LBTT payable. 

The Scottish Government says LBTT relief will:

• support delivery of the Green Freeports programme
• encourage long-term investment in these tax sites.

Key questions

The Land and Buildings Transaction Tax (Green Freeports Relief) (Scotland) Order 2023 (SSI 2023/Draft)

Please give your views on the following five questions:
 
Q1: To what extent do you consider that the provisions in this secondary legislation are necessary and will support the government objectives as set out above? 

Full and partial relief are to be available for eligible transactions within the period beginning on 1 October 2023 and ending on 30 September 2028. 

Q2: To what extent is this timeframe appropriate?  

The schedule to this secondary legislation sets out how the relief will operate. 

Q3: To what extent are the following parts of the schedule appropriate:

• the circumstances and conditions under which relief would be available
• the key terms as defined in the schedule
• the circumstances under which relief may be withdrawn
• the provisions relating to cases involving alternative finance.

Q4: What, if any, impacts (such as on equalities or the environment) could arise from the operation of this secondary legislation?

Q5: Have you any other comments related to this secondary legislation?