Land and Buildings Transaction Tax (Scotland) Act 2013 section Sch 11 para 21

Relief under Part 2 or Part 3 of this schedule

Schedule 11, paragraph 21 confirms that group relief or reconstruction/acquisition relief is not lost merely because a loan creditor gains or loses deemed control of the acquiring company, provided the original controlling persons remain in control.

• This paragraph protects LBTT group relief and reconstruction/acquisition relief from being withdrawn in certain circumstances involving loan creditors.
• A change of control of the acquiring company triggered solely by a loan creditor becoming, or ceasing to be, treated as having control does not cause relief to be clawed back.
• The protection only applies if the other persons who were previously treated as controlling the company continue to be so treated — that is, the underlying ownership has not genuinely changed.
• A "loan creditor" takes its meaning from section 453 of the Corporation Tax Act 2010, which broadly covers persons who hold loan capital or whose ordinary commercial lending gives them rights over the company.