Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 17 paragraph 5

Continuity of partnership despite changes in membership

Schedule 17, paragraph 5 establishes when a partnership is treated as continuing to be the same partnership for LBTT purposes, even though its membership has changed.

• A partnership retains its identity for LBTT purposes despite changes in its members.
• The key test is whether at least one person who was a member before the change remains a member afterwards.
• If even a single original member continues, the partnership is treated as the same entity throughout.
• This rule is important because it determines how LBTT provisions relating to partnerships apply when partners join or leave.