Is the tax charge on withdrawal of LBTT relief the same as the full standard amount that would have been due without the relief?

No, the tax charge on withdrawal of relief is not simply the full amount that would have been due without the relief. Instead, the amount chargeable must be calculated using the specific formula set out in paragraph 17 of Schedule 10, which may produce a different figure depending on the circumstances of the withdrawal.

What triggers the withdrawal of group relief under the Land and Buildings Transaction Tax (Scotland) Act 2013?

Group relief is withdrawn when the conditions for the relief cease to be met within a specified period. For example, if a company acquires property from a fellow group company claiming group relief, and the purchasing company leaves the group within three years, the relief is withdrawn and a tax liability arises.

Where is the calculation method for LBTT on withdrawal of relief found?

The calculation method for determining the amount of LBTT chargeable when relief is withdrawn is set out in paragraph 17 of Schedule 10 of the Land and Buildings Transaction Tax (Scotland) Act 2013. Paragraph 16 acts as a signpost, confirming that withdrawal of relief triggers this defined calculation process.

Land and Buildings Transaction Tax (Scotland) Act 2013 section Sch 10 para 16

Q: What happens when group relief, reconstruction relief, or acquisition relief is withdrawn under LBTT?

When group relief, reconstruction relief, or acquisition relief is withdrawn under LBTT, a tax charge arises on the transaction that previously benefited from the relief. The amount of tax chargeable is not left to general principles but is specifically calculated using the method prescribed in paragraph 17 of Schedule 10 of the Act.

Where relief is withdrawn, the amount of tax chargeable

Schedule 10 paragraph 16 states that when a group relief, reconstruction relief, or acquisition relief is withdrawn, the tax chargeable is calculated using the method set out in the next paragraph.

When a previously claimed relief is withdrawn, a tax charge arises
The amount of tax due is not simply the full standard charge — it is calculated using a specific method
The calculation method is set out in paragraph 17 of Schedule 10
This paragraph acts as a signpost, confirming that withdrawal of relief triggers a defined process for determining the tax payable

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