Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 11 paragraph 39

Definition of "ordinary share capital"

Schedule 11 paragraph 39 defines "ordinary share capital" for the purposes of the group relief provisions in the Land and Buildings Transaction Tax regime.

• Ordinary share capital means all the issued share capital of a company, regardless of the name given to the shares.
• Shares that only carry a right to a fixed-rate dividend and no other profit-sharing rights are excluded from the definition.
• This definition is important for determining group relationships and eligibility for group relief from LBTT.
• The distinction separates equity-type shares (which participate in profits) from fixed-return preference shares (which do not).