Land and Buildings Transaction Tax (Scotland) Act 2013 section 47

Residential property holding companies

Section 47 gives the Scottish Ministers the power to make regulations that bring transfers of interests in unlisted companies holding residential property within the scope of LBTT, treating them as if they were land transactions.

• Scottish Ministers may make regulations treating transfers of interests in residential property holding companies as chargeable land transactions for LBTT purposes.
• A residential property holding company is an unlisted company whose main activity is holding or investing in residential property, including property outside Scotland.
• A qualifying transfer is one that gives the transferee the right to occupy some or all of the company's residential property.
• The regulations may cover a wide range of matters including what counts as a qualifying transfer, the chargeable consideration, applicable tax rates and bands, who is liable to pay the tax, and the availability or removal of reliefs.

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