Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 11 paragraph 23

Withdrawal of group relief – change in shareholding structure

Paragraph 23 of Schedule 11 sets out the circumstances in which group relief from LBTT may be clawed back when a company that holds shares in the acquiring company leaves the same group as the target company.

• This provision targets situations where a company holding shares in the acquiring company (or shares derived from those shares) ceases to be in the same group as the target company.
• The shares in question must be ones to which the original exempt intra-group transfer related, or shares that were derived from those original shares.
• The clawback is triggered if the departure from the group occurs within three years of the effective date of the relevant transaction, or under arrangements made within that three-year window.
• The relevant transaction is one that was either fully exempt under Part 2 of Schedule 11 or subject to a reduced amount of tax under Part 3 of Schedule 11.