What does 'public body' mean under Schedule 16 of the LBTT Act?

Under Schedule 16 of the Land and Buildings Transaction Tax (Scotland) Act 2013, the term 'public body' extends beyond the public body itself. It includes any company in which the public body owns all shares, and any wholly-owned subsidiary of that company, provided complete ownership is maintained at every level.

Does a wholly-owned subsidiary of a public body's company qualify as a public body for LBTT purposes?

Yes. If a public body owns 100% of shares in a company, and that company owns 100% of shares in a subsidiary, the subsidiary is also treated as a public body under Schedule 16. This covers layered corporate structures commonly used by public bodies operating through holding and subsidiary companies.

What happens if a public body only partially owns a company under Schedule 16?

If the public body does not own all shares in the company — for example, owning only 90% with 10% held by a private investor — neither that company nor any of its subsidiaries qualifies as a public body under this provision. The key requirement is complete ownership with no private or third-party shareholding.

Why does Schedule 16 paragraph 5 extend the definition of public body?

The extension ensures that LBTT reliefs and provisions applying to public bodies also cover entities fully within their corporate ownership chain. Public bodies often operate through layered company structures, and this provision ensures those wholly-owned entities receive the same treatment as the public body itself.

Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 16 paragraph 5

References to a public body

Schedule 16 paragraph 5 extends the meaning of "public body" to include companies wholly owned by a public body and their wholly-owned subsidiaries.

The definition of "public body" in Schedule 16 is broader than just the public body itself.
A company in which all shares are owned by a public body is treated as a public body for the purposes of this schedule.
A wholly-owned subsidiary of such a company is also treated as a public body.
This ensures that LBTT reliefs or provisions applying to public bodies extend to entities fully within their corporate ownership chain.

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