Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 16 paragraph 10

Seller leaving the group — effect on withdrawal of group relief

Schedule 16, paragraph 10 addresses what happens to group relief when the seller, rather than the buyer, is the company that leaves the group, and the further consequences if control of the buyer subsequently changes.

• Group relief is not withdrawn where the buyer and seller stop being in the same group because the seller leaves, rather than the buyer.
• The seller is treated as the one leaving if the group break-up results from a share transaction involving the seller itself, or a company higher up in the group structure that ceases to be in the same group as the buyer.
• However, if after the seller has left the group there is a subsequent change in control of the buyer — such as a new person gaining control, an existing controller losing control, or the buyer being wound up — the group relief withdrawal rules are revived as though the buyer had at that point left the seller's group.
• A change in control caused solely by a loan creditor obtaining or losing control of the buyer does not trigger this revival, provided the other persons who controlled the buyer before that change continue to do so.