Land and Buildings Transaction Tax (Scotland) Act 2013 section 22

Preservation of group relief on insurance company demutualisation

Section 22 of Schedule 10 provides that group relief from LBTT is not withdrawn in certain circumstances involving the transfer of a seller's business to another company as part of an insurance company demutualisation.

• Group relief is preserved when the buyer leaves the seller's group due to a business transfer connected with the demutualisation of an insurance company.
• The transfer must involve the whole or part of the seller's business being moved to another company (the acquiring company).
• The transfer must qualify for stamp duty relief under section 96 of the Finance Act 1997, which deals specifically with the demutualisation of insurance companies.
• Immediately after the transfer, the buyer must be a member of the same group as the acquiring company.

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