Land and Buildings Transaction Tax (Scotland) Act 2013 section 42C

Definitions for group relief withdrawal

Section 42C defines two key terms used when determining whether group relief from LBTT can be withdrawn: what counts as a "relevant time" and what it means for one company to be "above" another in a group structure.

• A "relevant time" is any point between the effective date of the group-relief-exempt transaction and the moment the buyer leaves the same group as the seller.
• This window of time is important because changes in group structure during this period can trigger withdrawal of the relief originally claimed.
• Company A is "above" Company B in a group structure if Company B (or any company above Company B) is a 75% subsidiary of Company A.
• These definitions support the rules in paragraph 42B(b), which allow Revenue Scotland to withdraw group relief where certain structural changes occur within the relevant period.