Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 17 paragraph 39

Relief where a connected company is in the same group as the original owner

Schedule 17, paragraph 39 provides a reduction in the LBTT charge when a company that is connected to an original owner transferring property to a partnership would have qualified as a "corresponding partner" but was excluded because only individuals count as connected persons, provided the company and the original owner are in the same corporate group.

• When calculating the sum of the lower proportions for a transfer of property to a partnership, a connected company may be excluded because only connected individuals are recognised as corresponding partners.
• If the excluded company and the original owner are members of the same corporate group, the LBTT charge on the transaction is reduced to the amount that would have been payable had the company been treated as a corresponding partner.
• The group relief provisions in Schedule 10 apply to this reduction, but with modifications — notably, a clawback of relief can be triggered if a relevant partner leaves the same corporate group as the seller within three years of the transaction.
• Clawback applies where, at the time the relevant partner leaves the group, a chargeable interest acquired under the original relieved transaction (or derived from it) is still held by or on behalf of the partnership and has not since been acquired at market value through a chargeable transaction where group relief was available but unclaimed.