Fresh Start Relief reduces LBTT for buyers bringing long-term empty non-residential property in Scotland back into use. This guide explains the qualifying conditions, how much it can save, and how to claim it through Revenue Scotland.
What the Relief Does
Fresh Start Relief reduces or removes the LBTT charge on qualifying purchases of non-residential property in Scotland that has been unoccupied for an extended period, to encourage buyers to bring empty commercial buildings back into active economic use rather than leaving them vacant.
Qualifying Conditions
To qualify, the property must be wholly non-residential immediately before the purchase, must have been unoccupied for the required continuous period set out in Revenue Scotland guidance, and must be suitable for or intended to be used for qualifying non-domestic purposes after the purchase. The specific empty-period threshold and use conditions should always be checked against current Revenue Scotland guidance for the transaction in question.
How to Claim
The relief is claimed within the LBTT return filed with Revenue Scotland within 30 days of completion. Your solicitor or conveyancer typically identifies whether the transaction qualifies and applies the relief as part of the standard conveyancing and tax filing process, rather than through a separate application.
Evidence Required
Revenue Scotland can request evidence supporting the empty-property claim, such as business rates records showing the property was unoccupied, marketing history, or a surveyor's assessment. Gathering this evidence before submitting the LBTT return reduces the risk of a delayed or challenged claim.
Frequently Asked Questions
What is Fresh Start Relief?
Fresh Start Relief is an LBTT relief available in Scotland for buyers purchasing certain non-residential (commercial) properties that have been empty for an extended period, reducing or removing the LBTT charge to encourage bringing empty buildings back into economic use.
What properties qualify for Fresh Start Relief?
The property must be wholly non-residential immediately before the sale, have been unoccupied for a continuous qualifying period, and be suitable for use as (or intended for conversion into) certain non-domestic purposes set out in Revenue Scotland guidance -- typically retail, office or similar business premises.
How much LBTT does Fresh Start Relief save?
Where the relief applies in full, it removes LBTT on the qualifying non-residential portion of the transaction, subject to the specific conditions in the legislation being met. Partial relief may apply in some mixed-use scenarios, so the exact saving depends on the transaction details.
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Is Fresh Start Relief the same across the whole of the UK?
No. Fresh Start Relief is specific to Scotland's LBTT regime under Revenue Scotland. England's SDLT and Wales's LTT have their own separate (and different) sets of non-residential and empty-property reliefs, so a relief available in Scotland will not automatically apply to an equivalent purchase elsewhere in the UK.
Does the property need to stay empty forever to keep the relief?
No -- the entire purpose of the relief is to encourage bringing the empty property back into use. The qualifying condition is about the property's status before the purchase; buyers are expected to bring it back into active use afterwards, not keep it empty.
Can Fresh Start Relief apply to a mixed residential and non-residential purchase?
The relief specifically targets non-residential transactions, so a purchase that includes a residential element is assessed under the mixed-use LBTT rules, and the relief may only reduce the non-residential portion of the charge, if the qualifying conditions are otherwise met.
How do I claim Fresh Start Relief?
The relief is claimed as part of the LBTT return submitted to Revenue Scotland within 30 days of the transaction, usually handled by your solicitor or conveyancer, who will confirm the property meets the qualifying empty-period and use conditions before applying the relief.
What evidence is needed to support a Fresh Start Relief claim?
Revenue Scotland can ask for evidence that the property was genuinely unoccupied for the required period and was non-residential immediately before the sale, such as business rates records, marketing history or a surveyor's report, so it is sensible to gather this evidence before submitting the LBTT return.
Disclaimer: Fresh Start Relief conditions are set by Revenue Scotland and interpreted case by case. This guide is for general information only and is not professional advice. Consult a qualified solicitor and refer to revenue.scot for current official guidance before relying on any treatment.
