Land and Buildings Transaction Tax (Scotland) Act 2013 section Schedule 11 paragraph 8

Where consideration consists partly of non-redeemable shares

Schedule 11 paragraph 8 sets out the rules on what other forms of consideration are permitted alongside non-redeemable shares for group reconstruction relief to apply.

• Where consideration for an acquisition partly consists of issuing non-redeemable shares, the qualifying condition is only met if the remainder of the consideration falls within strict limits.
• Any cash element must not exceed 10% of the nominal value of the non-redeemable shares issued.
• The acquiring company may also assume or discharge liabilities of the target company as part of the consideration.
• The remaining consideration must consist entirely of permitted cash, the assumption or discharge of liabilities, or a combination of both — no other forms of consideration are allowed.