Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 11 paragraph 40

Application of Corporation Tax Act 2010 rules on equity holders and profit distribution

Paragraph 40 of Schedule 11 applies existing Corporation Tax Act 2010 rules about equity holders and the distribution of profits or assets when determining whether a company qualifies as a 75% subsidiary for the purposes of LBTT relief.

• The rules in Chapter 6 of Part 5 of the Corporation Tax Act 2010 are imported into the LBTT subsidiary test.
• These rules deal with identifying who the equity holders of a company are and how profits or assets available for distribution are calculated.
• They apply specifically to the economic ownership and distributable profits tests in paragraph 37(b) and (c) of Schedule 11.
• This ensures the LBTT definition of a 75% subsidiary aligns with the equivalent Corporation Tax concept, providing consistency across both tax regimes.