Land and Buildings Transaction Tax: amendment to group relief - analysis of responses and Scottish Government response

An analysis and Scottish Government response to the Land and Buildings Transaction tax Group Relief consultation

Scottish Government Response

29. The Scottish Government would like to thank all those who responded to this consultation. The high level of detailed and technically informed responses along with the feedback and comments provided separately has helped to inform the Scottish Government's approach.

30. Having given due consideration to the consultation responses, the Scottish Government has made a number of changes to its proposed approach. These are set out below.

31. The Scottish Government has amended its approach on the circumstances in which group relief could be withdrawn. The draft legislation will provide that relief will not be lost in relation to standard "share pledge" type arrangements and other analogous arrangements, so long as any relevant right held by a lender in relation to that is not exercised. This is a development from the consultation position that relief would be lost if a lender was in a position to exercise their right in relation to a share pledge type arrangement, even if that right was not exercised. The revised position is consistent with the position in place for SDLT in England and Northern Ireland and Land Transaction Tax in Wales.

32. The Scottish Government has also amended the draft legislation in response to calls for the provisions to apply not just to relevant arrangements in the UK, but also to analogous arrangements under the law of a country or territory outside the UK. In addition, a number of other drafting changes have been made to address certain comments around terminology and the description of relevant arrangements.

34. The proposed legislation has not been amended to take account of the potential impact of any future Moveable Transactions (Scotland) Bill. The Scottish Government intends to consult on the Scottish Law Commissions report and will consider the points made in that context.

35. The Scottish Government's approach will otherwise be as set out in the consultation.

36. Following the results of this consultation, Scottish Ministers laid the draft legislation in the Scottish Parliament on 17 May 2018 to amend schedule 10 of LBTT(S)A 2013 to provide prospective availability of group relief in the relevant circumstances. Subject to the usual process of scrutiny and consideration by the Scottish Parliament, the relief will be available in relation to relevant transactions which occur on or after 30 June 2018.


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