Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 11 paragraph 19

Relief under Part 2 or Part 3 of this schedule

Paragraph 19 of Schedule 11 confirms that group relief or reconstruction/acquisition relief is not withdrawn simply because control of the acquiring company changes through a share transfer that itself qualifies for share acquisition relief.

• Group relief (Part 2) and reconstruction/acquisition relief (Part 3) can normally be clawed back if certain conditions change after the original transaction.
• One event that might otherwise trigger withdrawal is a change in control of the company that acquired the land or buildings.
• Where that change of control arises because shares in the acquiring company are transferred to another company, and that share transfer qualifies for share acquisition relief, the original LBTT relief is protected.
• This rule prevents a double penalty where the share transfer is itself a relieved transaction, ensuring that qualifying corporate reorganisations do not inadvertently undo previously granted reliefs.