Land and Buildings Transaction Tax (Scotland) Act 2013 schedule 17 paragraph 16

Corresponding partners

Paragraph 16 of Schedule 17 defines who counts as a "corresponding partner" in relation to a relevant owner when calculating the sum of the lower proportions at Step 2 of the market value calculation for land transfers involving partnerships.

• A corresponding partner is someone who, immediately after the land transfer, is both a partner in the partnership and is either the relevant owner themselves or an individual connected with the relevant owner.
• This definition is important because corresponding partners' partnership shares are used in Step 2 of the paragraph 14 calculation to determine the chargeable proportion of a land transfer to or from a partnership.
• A special rule applies to companies acting as trustees: such a company is treated as if it were an individual connected with the relevant owner, but only where the connection arises solely because of the trustee relationship under section 1122(6) of the Corporation Tax Act 2010.
• This trustee rule prevents an artificial narrowing of the corresponding partner definition that might otherwise occur when property is held through a corporate trustee arrangement.