Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 7 paragraph 20

Determining control of a relevant financial institution

Paragraph 20 of Schedule 7 establishes how control of a relevant financial institution is to be determined for the purposes of the alternative property finance provisions, by applying the definition of control found in Corporation Tax Act 2010.

• Control of a relevant financial institution is determined by applying section 1124 of the Corporation Tax Act 2010.
• Section 1124 broadly defines control as having the power to secure that the affairs of a company are conducted in accordance with one's wishes.
• This includes holding a majority of share capital, voting rights, or rights to the greater part of distributable income or assets on a winding up.
• Using an established corporation tax definition ensures consistency and certainty when determining whether parties are connected for the purposes of LBTT alternative finance relief.