Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 5 paragraph 18

Partial withdrawal of group relief

Paragraph 18 of Schedule 5 sets out the circumstances in which group relief from LBTT is partially withdrawn following a qualifying event.

• Group relief may be partially withdrawn if a disqualifying event occurs within the relevant period after the transaction.
• Partial withdrawal applies where, had the event occurred just before the transaction, the transaction would still have qualified as a relevant transaction but would have attracted more tax.
• The additional tax that would have been due becomes payable as a result of the partial withdrawal.
• This ensures that changes in circumstances shortly after a group transaction do not allow an unintended tax advantage to persist.