Land and Buildings Transaction Tax (Scotland) Act 2013 section Sch 17 para 28

Transfer from a partnership where all partners are bodies corporate

Schedule 17 paragraph 28 provides a special rule for calculating the chargeable consideration when land is transferred out of a partnership where all partners are companies and their combined lower proportions total 75 or more.

• This rule applies where, immediately before the land transfer, every partner in the partnership is a body corporate (i.e. a company) and the sum of the lower proportions is 75 or more.
• When this rule applies, the chargeable consideration for the land transfer is simply taken to be the full market value of the interest transferred, with no reduction available.
• The same full market value approach applies to transfers of land between partnerships and to lease-related transactions, with the usual proportionate reduction provisions being disapplied.
• The sum of the lower proportions, which is the key threshold test for this rule, is determined in accordance with paragraph 22 of Schedule 17.

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