Land and Buildings Transaction Tax (Scotland) Act 2013 section 23

Exceptions from deemed market value

Section 23 sets out the circumstances in which the deemed market value rule in section 22 does not apply to transactions involving connected companies.

• The deemed market value rule does not apply where the buying company holds the property as trustee in its professional trust management business.
• The rule also does not apply where the buying company holds the property as trustee and the only connection with the seller arises through the trustee relationship under section 1122(6) of the Corporation Tax Act 2010.
• A further exception applies where a company distributes assets (including on winding up), provided the property was not the subject of a group relief claim by the seller within the preceding three years.
• These exceptions ensure that certain trust arrangements and genuine corporate distributions are taxed on the actual consideration rather than being automatically uplifted to market value.

---