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

Definitions of "director" and "controlling director"

Section 42D defines the terms "director" and "controlling director" as used in the provisions allowing Revenue Scotland to issue payment notices to responsible persons connected with a company's LBTT liability.

• A "director" is defined broadly, using the Income Tax (Earnings and Pensions) Act 2003 definition, which covers both formally appointed directors and those acting in a director's capacity.
• The definition of "director" also extends to shadow directors — persons whose directions or instructions the company's directors are accustomed to follow, as defined in the Corporation Tax Act 2010.
• A "controlling director" is a director who has control of the company, determined by reference to the Corporation Tax Act 2010 tests for control.
• These definitions are relevant when Revenue Scotland seeks to recover unpaid LBTT from individuals connected with a company that has defaulted on its tax obligations.