Land and Buildings Transaction Tax (Scotland) Act 2013 section 35C

Definitions for recovery of reconstruction and acquisition relief

Section 35C defines two key terms used in determining who may be held liable when relief is recovered following a change of control.

• The "relevant time" is any point between the effective date of the original relieved transaction and the change of control that triggers the recovery of tax.
• A company is "above" another company in a group structure if the lower company (or a company above it) is a 75% subsidiary of the higher company.
• These definitions support the rules in paragraph 35B, which identify the persons who may be required to pay the recovered tax.
• The 75% subsidiary test follows the standard group relationship used throughout the LBTT relief provisions.