LBTT Record Keeping Duration and Penalties for Non-Compliance Guidance

How long to keep LBTT records

LBTT records must be kept for a minimum period, but often for longer if Revenue Scotland has an open enquiry or still has time to start one. The exact deadline depends on whether the records relate to an LBTT return, a non-notifiable transaction, or a separate claim made outside a return. Keeping records for too short a time can lead to penalties.

• For an LBTT return, records are usually kept until at least 5 years after the return was made, or 5 years after notice of an amendment made within the 12-month amendment period.
• You must keep the records longer if an enquiry is ongoing, or until Revenue Scotland no longer has the power to open an enquiry if none has started.
• For a non-notifiable land transaction, record-keeping can still apply, with the 5-year period running from the date the return would have been due if the transaction had been notifiable.
• For a stand-alone claim made outside a return, the basic retention period is 3 years from the date of the claim, but this can be extended by an enquiry or by Revenue Scotland’s remaining power to enquire into an amendment.
• Revenue Scotland may specify an earlier retention date in some cases, but otherwise records must be kept until the latest relevant date under the rules.
• To work out the correct deadline, first identify the type of record, then check for any amendments, enquiries, or remaining enquiry windows.

Scroll down for the full analysis.

LBTT record-keeping: how long you must keep transaction and claim records

This page explains how long records must be kept for Land and Buildings Transaction Tax (LBTT) purposes. The rules matter because keeping records for too short a time can lead to penalties, even if the tax itself was reported correctly. The required period depends on what the records relate to: an LBTT return, a non-notifiable transaction, or a separate claim made outside a return.

What this rule is about

LBTT record-keeping rules are designed to make sure Revenue Scotland can check whether a return or claim was correct. The law does not simply require records to be kept for a fixed number of years in every case. Instead, the retention period is linked both to a minimum number of years and to Revenue Scotland’s enquiry powers.

That means a person may need to keep records for longer than the basic five-year or three-year period if an enquiry is still open, or if Revenue Scotland still has time to open one.

What the official source says

According to the guidance, a person who makes an LBTT return must keep and preserve the records specified in LBTT9002 until the later of two dates.

The first date is the “relevant day”. This is usually the fifth anniversary of the day the LBTT return was made. If the return was amended within the 12-month amendment period, it becomes the fifth anniversary of the day notice of the amendment was given under section 83 of the Revenue Scotland and Tax Powers Act 2014.

Revenue Scotland may also specify an earlier day, in which case that earlier day can be the relevant day.

The second date is the point at which any enquiry position has ended. That means either:

• the date an enquiry into the LBTT return is completed, or
• if there is no enquiry, the date when Revenue Scotland no longer has the power to enquire into the return.

The records must be kept until the end of whichever of those two dates is later.

For a buyer in a land transaction that is not notifiable, broadly the same timing rules apply. The main difference is the starting point for the five-year period. Instead of running from the day a return was made, it runs from the day by which the return would have had to be made if the transaction had been notifiable.

The guidance also deals separately with claims made outside an LBTT return or amendment, under section 107 of the 2014 Act. In that case, the person must keep whatever records are needed to make a correct and complete claim until the latest of:

• the end of three years beginning with the day the claim was made,
• if there is an enquiry into the claim or an amendment to it, the time the enquiry is completed, or
• if the claim is amended and there is no enquiry into the amendment, the time when Revenue Scotland no longer has the power to enquire into that amendment.

The source also states that failure to keep and preserve records as required can lead to a penalty under the relevant provisions of the Revenue Scotland and Tax Powers Act 2014.

What this means in practice

The practical point is simple: do not assume you can destroy LBTT records once five years or three years have passed. The legal test is not just a time period on its own. You must also consider whether Revenue Scotland still has an open enquiry, or still has time to start one.

For LBTT returns, five years is the normal minimum period. But if there is an enquiry that continues beyond that point, the records must still be kept until the enquiry has been completed.

If the return was amended within the allowed 12-month amendment period, the five-year clock is reset to run from the date notice of the amendment was given, not the date of the original return.

For non-notifiable transactions, buyers should not assume that no return means no record-keeping duty. The guidance makes clear that records must still be kept, using the date the return would have been due if notification had been required.

For stand-alone claims made outside a return, the basic period is shorter: three years from the date of the claim. But again, that is only the starting point. If there is an enquiry into the claim or an amended claim, the records must be kept longer.

How to analyse it

A sensible way to work out the retention period is to ask these questions in order:

• What do the records relate to: an LBTT return, a non-notifiable transaction, or a separate claim outside a return?
• If it is an LBTT return, when was the return made?
• Was the return amended within the 12-month amendment period, and if so, when was notice of that amendment given?
• If it is a non-notifiable transaction, when would the return have been due if the transaction had been notifiable?
• Has Revenue Scotland opened an enquiry into the return, claim, or amendment?
• If not, does Revenue Scotland still have the power to open an enquiry?
• Has Revenue Scotland specified an earlier day for retention in the particular case?

After answering those questions, keep the records until the latest date required by the rules. If more than one possible date applies, the later date governs.

Example

Illustration: a buyer files an LBTT return on 1 June 2024. No amendment is made. The normal five-year date would be 1 June 2029. If Revenue Scotland opens an enquiry before its enquiry window closes and that enquiry is not completed until September 2029, the records must be kept until the enquiry is completed, not just until June 2029.

Another illustration: a person makes a claim outside a return on 10 January 2025. The basic retention period would run for three years from that date. But if the claim is amended and Revenue Scotland still has power to enquire into the amendment after that three-year point, the records must be kept until that power has ended, or longer if an enquiry is actually opened and remains ongoing.

Why this can be difficult in practice

The main difficulty is that the end date is not always obvious from the filing date alone. A person must understand whether an enquiry has been opened, whether an amendment affects the timing, and when Revenue Scotland’s power to enquire has expired. Those issues may not be straightforward, especially where there have been corrections, amendments, or separate claims after the original transaction.

Another practical difficulty is that the guidance refers to records that must be “kept and preserved”, but the exact documents required are dealt with elsewhere. So the retention period and the scope of the records are separate questions. You need both: first identify what records must be kept, then work out how long they must be retained.

There is also a difference between records for returns and records for claims outside returns. Using the wrong category could lead to applying the wrong time limit.

Key takeaways

• For LBTT returns, records usually need to be kept for at least five years, but often longer if an enquiry is open or can still be opened.
• For claims made outside a return, the basic period is three years from the claim, subject again to any enquiry or enquiry window.
• Non-notifiable transactions can still carry record-keeping duties, and failure to keep required records can lead to penalties.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: LBTT Record Keeping Duration and Penalties for Non-Compliance Guidance

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