Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 17 paragraph 38

Modifications to group relief for partnership transactions

Schedule 17 paragraph 38 explains how the group relief rules are modified when they apply to certain partnership transactions, including transfers of chargeable interests to partnerships and transfers of partnership interests that are treated as land transactions.

• Group relief rules apply in modified form to transfers of chargeable interests to partnerships (Part 4 transactions) and to transfers of partnership interests treated as land transactions
• Group relief is withdrawn if a partner who was a partner at the time of the original relieved transaction leaves the same group as the seller within three years, or under arrangements made within that period
• Where relief is withdrawn, the amount of tax clawed back takes into account what the partnership holds at the time the partner leaves the group and the departing partner's share of the partnership's income profits at that time
• Throughout the group relief withdrawal and recovery provisions, references to "the buyer" are replaced with "the relevant partner" to reflect the partnership context