Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 10 paragraph 3

Restriction on group relief where control arrangements exist

Paragraph 3 of Schedule 10 prevents group relief from applying where, at the time of the transaction, arrangements exist that would allow someone to gain control of the buying company without also controlling the selling company.

• Group relief is denied if certain control arrangements are in place at the effective date of the transaction.
• The restriction applies where any person, or combination of persons, has or could obtain control of the buyer.
• The key test is whether those persons do not also have, or could not also obtain, control of the seller.
• The purpose is to prevent abuse of group relief where the buyer is set to leave the group through a change of control.