SSI 2018/222 - The Land and Buildings Transaction Tax (Group Relief Modification) (Scotland) Order 2018
Released 29 June 2018
SSI 2018/222 modifies LBTTSA 2013, Sch. 10 to enable group companies with mortgaged shares to obtain group relief.
The Land and Buildings Transaction Tax (Group Relief Modification) (Scotland) Order 2018 modifies the Land and Buildings Transaction Tax (Scotland) Act 2013 to modify Sch. 10 of the Act which provides for group relief. In terms of Sch. 10, para. 3 relief is not available if at the effective date there are in place arrangements by virtue of which a person or persons get control of or could obtain control of the buyer but not the seller. In terms of the amendment group relief is not lost if shares in the company are mortgaged by a legal or equitable charge provided the contingency allowing the mortgage to be called up does not arise. The modification also gives the same relief in the case an arrangement in Scotland analogous to a pledge but with rights (not rights in security) in shares or securities transferred to a creditor subject to the creditor’s obligation to retransfer the rights back to the debtor if certain conditions are met. The order comes into force on 30 June 2018.