Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 10 paragraph 29

Exception from withdrawal of group relief where change of control is due to a loan creditor

Schedule 10 paragraph 29 provides an exception to the rule in paragraph 28 that withdraws group relief when control of the buyer changes, specifically where the change of control is solely because a loan creditor gains or loses control.

• Paragraph 28 can withdraw group relief when there is a change in control of the buyer after the buyer leaves the group.
• However, paragraph 29 disapplies this withdrawal where the change of control arises solely because a loan creditor obtains or ceases to have control of the buyer.
• A loan creditor has the meaning given by section 453 of the Corporation Tax Act 2010 — broadly, a person who has lent money to the company or holds the company's debt securities.
• The exception only applies if the other persons who controlled the buyer before the change continue to control it afterwards.