Land and Buildings Transaction Tax (Scotland) Act 2013 schedule 17 paragraph 24

Corresponding partners

Paragraph 24 defines who counts as a "corresponding partner" in relation to a relevant owner when calculating the sum of the lower proportions under paragraph 22, Step 2.

• A corresponding partner is someone who was both a partner in the partnership and either the relevant owner themselves or an individual connected with the relevant owner, immediately before the land transfer took place.
• The test looks at the position immediately before the land was transferred, not at any other point in time.
• A company acting as a trustee can be treated as if it were an individual connected with the relevant owner, but only where the connection arises solely through the trustee relationship under section 1122(6) of the Corporation Tax Act 2010.
• This definition is important because the corresponding partner's share in the partnership feeds directly into the calculation that determines how much LBTT is chargeable on a transfer of land from a partnership.