Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 11 paragraph 37

Definition of a 75% subsidiary

Paragraph 37 of Schedule 11 defines when one company is treated as the 75% subsidiary of another company for the purposes of group relief from LBTT.

• A parent company must beneficially own at least 75% of the ordinary share capital of the subsidiary.
• The parent must be beneficially entitled to at least 75% of the subsidiary's distributable profits.
• The parent must be beneficially entitled to at least 75% of the subsidiary's assets on a winding-up.
• All three conditions must be met simultaneously for the 75% subsidiary relationship to exist.