Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 10 paragraph 21

Preservation of group relief on share acquisitions qualifying for stamp duty acquisition relief

Paragraph 21 of Schedule 10 sets out the circumstances in which group relief from LBTT is preserved when a share acquisition causes the buyer to leave the seller's group.

• Group relief is not withdrawn simply because the buyer leaves the seller's group due to a share acquisition by another company.
• The share acquisition must qualify for stamp duty acquisition relief under section 75 of the Finance Act 1986, and all the conditions for that relief must be met.
• Immediately after the share acquisition, the buyer must be a member of the same group as the acquiring company.
• This provision prevents a technical change in group structure from triggering an LBTT clawback where the economic substance of group ownership is maintained through the new group.

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