From 1 April 2026, Scotland will exempt trades in units of co‑ownership authorised contractual schemes (CoACS) from Land and Buildings Transaction Tax. Holyrood approved the measure on 18 February 2026 and the Scottish Government’s policy note confirms the commencement date. (parliament.scot)

In practical terms, investor‑level transactions in CoACS units - such as the creation, transfer, redemption or cancellation of units - will no longer trigger LBTT. When a scheme itself acquires land or property in Scotland, the tax position is unchanged and LBTT remains payable. (legislation.gov.uk)

Minister for Public Finance Ivan McKee told MSPs the change recognises that investor‑level unit trades are “tax‑neutral” for LBTT because the underlying Scottish property stays within the scheme. “It removes a disincentive to invest in Scotland,” he said. (parliament.scot)

Pressed on revenue, McKee pointed to the Scottish Fiscal Commission’s view that the impact sits “below the materiality threshold”, set at £5m. The Finance and Public Administration Committee recommended approval by five votes to nil, with one abstention. (parliament.scot)

What is a CoACS? It’s an FCA‑authorised contractual scheme under the Financial Services and Markets Act 2000. Investors hold units while a depositary holds the assets, and for capital gains the investor’s asset is the unit, not the bricks and mortar beneath it. (legislation.gov.uk)

Why this matters on our patch: northern local government pension pools and managers often run UK real estate via ACS vehicles that include Scottish assets. Border to Coast, based in Leeds, operates a UK Real Estate ACS, while LGPS Central has set out plans for a Property ACS sub‑fund - both structures affected when units are traded. (bordertocoast.org.uk)

This is not a stamp‑duty holiday by the back door. LBTT continues to apply when a CoACS buys or sells Scottish property; the exemption is limited to investor‑level unit movements within the fund. That distinction is explicit in the Government’s policy note and committee papers. (legislation.gov.uk)

The move follows a 2025 consultation on property investment funds and is designed to align Scotland with long‑standing practice in England, where trading CoACS units does not trigger SDLT. Ministers received 18 responses and will publish a full analysis. (gov.scot)

For northern CFOs, pension trustees and fund lawyers active in Scotland, the headline is simple: investor‑level CoACS unit transactions fall outside LBTT from 1 April 2026; direct Scottish property purchases by the scheme do not. Check fund documentation and processes ahead of the change. (legislation.gov.uk)

The wider context matters too. SDLT has not applied to Scottish land deals since April 2015, with LBTT running the show. This targeted fix tidies up the investor end of fund activity while keeping tax on genuine property transactions fully intact. (gov.uk)