A client wishes to transfer four residential properties in Scotland in to a Scottish company and then transfer a further three similar properties in around a month or so. The intention is there already to do this, but for various reasons, he wants to do it in two tranches.
The properties are owned personally, and we want to obtain Multiple Dwellings Relief and not have the Additional Dwelling Supplement applied i.e. there are six or more properties in a single transaction, but there will be an as yet undefinable a gap in between the two transfers.
There doesnt seem to be anything in the legislation about this and the LBTT/Revenue Scotland gives a very limited commentary on this. As it's self assessment, Revenue Scotland say we should do what we think is right but it would be good to know what others have done in similar situations to substantiate the linked aspect.
I was thinking that the client and the company could sign an undertaking agreeing that at least six properties will be transferred as part of a busienss arrangement, but I'm not sure what level of detail would be required?
Any thoughts?
