Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 11 paragraph 4

Mixed consideration: shares and liabilities

Schedule 11 paragraph 4 sets out what other forms of consideration are permitted alongside non-redeemable shares when claiming group relief, restricting this to the assumption or discharge of the target company's liabilities.

• Group relief requires that the consideration for a land transaction includes the issue of non-redeemable shares by the acquiring company.
• Where the consideration is not entirely made up of non-redeemable shares, the only other permitted element is the assumption or discharge of the target company's liabilities by the acquiring company.
• No other form of consideration — such as cash, loan notes, or other assets — is allowed if group relief is to be claimed.
• If any part of the non-share consideration consists of something other than the assumption or discharge of the target company's liabilities, the qualifying condition is not met and group relief will not be available.