Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 10 paragraph 2

Group relief exemption for land transactions between group companies

Schedule 10 paragraph 2 provides that a land transaction between two companies in the same group is exempt from Land and Buildings Transaction Tax (LBTT).

• A land transaction can be completely exempt from LBTT where it takes place between two companies in the same corporate group.
• Both the seller and the buyer must be companies — this relief does not apply to other types of entities such as partnerships or individuals.
• The two companies must be members of the same group at the effective date of the transaction, which is typically the date of completion or, if earlier, the date of substantial performance of the contract.
• This is an exemption from charge rather than a relief reducing the amount of tax, meaning that where it applies, no LBTT is due on the transaction at all.