LBTT Guidance for Executors, Administrators, and Receivers in Representative Roles

LBTT when someone acts for another person

Land and Buildings Transaction Tax (LBTT) still has to be dealt with if the person involved in the property transaction has died or cannot act for themselves. In these cases, the legal responsibility usually passes to the person who has authority to act for them, such as executors, administrators, or a court-appointed receiver.

• If a person entered into a land transaction before death, the estate’s executors or administrators must handle the LBTT return, declarations, and any tax due.
• A UK court-appointed receiver with control of property is responsible for LBTT obligations linked to transactions affecting that property.
• There is no special LBTT regime for minors or people who lack capacity, so the usual legal rules on representation apply instead.
• The main issue is identifying who has proper legal authority to act, because the LBTT duties follow that representative role.
• In practice, delays or uncertainty can arise where estates are still being administered or where different legal roles overlap.

Scroll down for the full analysis.

LBTT and people acting in a representative capacity

This page explains who deals with Land and Buildings Transaction Tax when the person involved in the transaction cannot act for themselves, or has died. The main point is that LBTT obligations do not disappear just because the original buyer or seller is no longer able to deal with them personally. In some cases, the law puts those obligations onto a representative instead.

What this rule is about

LBTT normally applies to the buyer in a land transaction, and that buyer is usually responsible for filing any return and paying any tax due. But sometimes the person connected with the transaction is not in a position to act personally. Common examples are where the person has died, or where a court-appointed receiver controls property.

Section 51 of the Land and Buildings Transaction Tax (Scotland) Act 2013 deals with this kind of situation. It identifies who must carry out the LBTT obligations when someone is acting in a representative capacity.

What the official source says

The official guidance says that where a deceased person entered into a land transaction before death, the executors or administrators of the estate must fulfil the LBTT obligations arising from that transaction.

It also says that a receiver appointed by a UK court who has control of property is responsible for discharging obligations relating to a transaction affecting that property. The receiver is treated as responsible as if the property were not under the court’s direction and control.

The representative is responsible for making any required LBTT return, making declarations, and paying any tax due.

The guidance also says there is no special LBTT provision for incapacitated persons or minors. Instead, the ordinary legal framework that allows others to act for them will apply, including the Adults with Incapacity (Scotland) Act 2000 where relevant.

What this means in practice

If a person entered into a chargeable land transaction and then died before the LBTT compliance steps were completed, the estate’s executors or administrators step into the picture for LBTT purposes. They are the ones expected to deal with the return, any declaration, and payment of tax.

This matters because the tax position still has to be regularised even though the original party has died. The practical question is not whether LBTT still applies, but who now has authority and responsibility to deal with it.

The same idea applies where a court-appointed receiver controls property. If there is a transaction affecting that property, the receiver must deal with the LBTT obligations connected with it.

For minors and people lacking capacity, the guidance does not create a separate LBTT code. Instead, you must look to the wider legal rules that determine who can validly act on that person’s behalf. Once a person is properly acting for them under that framework, that representative would deal with the LBTT steps that need to be taken.

How to analyse it

A sensible way to approach the issue is to ask these questions:

• Was there a land transaction entered into before the person died?
• If so, who are the executors or administrators responsible for the estate?
• Has a UK court appointed a receiver with control over the relevant property?
• If the person is a minor or lacks capacity, who has legal authority to act for them under the general law?
• What LBTT obligations still need to be completed: return, declaration, payment, or all three?

The key point is to identify the person who has legal authority to act. LBTT obligations follow that representative role; they do not simply remain with someone who can no longer act personally.

Example

Illustration: A buyer entered into a land transaction in Scotland but died before the LBTT return was filed and the tax paid. The buyer’s executors are then responsible for dealing with the LBTT compliance arising from that transaction. They must make any required return, complete any necessary declaration, and pay any tax due from the estate in the same way the deceased would have had to do if still alive.

Why this can be difficult in practice

The guidance is short, but the real difficulty is often not the LBTT rule itself. The difficulty is working out who legally has authority to act.

For deceased persons, there may be a delay before executors or administrators are in a position to act formally. For incapacitated persons or minors, the LBTT legislation does not provide a special shortcut, so the answer depends on the wider legal framework governing representation.

There can also be practical uncertainty where several people are involved in administering an estate or where court control of property overlaps with other legal roles. In those cases, the important issue is to identify who is actually responsible for carrying out the tax obligations under the relevant legal authority.

Key takeaways

• LBTT obligations can be carried out by a representative where the original person cannot act.
• Executors or administrators deal with LBTT obligations arising from transactions entered into by a deceased person before death.
• There is no separate LBTT code for minors or incapacitated persons; the general law on legal representation applies.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: LBTT Guidance for Executors, Administrators, and Receivers in Representative Roles

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