This relief is provided by the provisions of schedule 13A to the LBTT(S)A 2013 which is inserted by regulation 2(2)(a) of The Land and Buildings Transaction Tax (Addition and Modification of Reliefs) (Scotland) Order 2015.
Description of relief
In certain situations (see further below), full relief can be claimed for a land transaction involving friendly societies. 'Friendly society' in this context takes the meaning given under section 116 of the Friendly Societies Act 1992: ‘an incorporated friendly society or a registered friendly society’.
The general concept of a friendly society is that the society’s members contribute to a fund to be used for the welfare of the members or for their assistance when in need or distress.
Relief conditions
A land transaction effected by or in consequence of any of the following is exempt from charge:
- an amalgamation of two or more registered societies under section 82 of the Friendly Societies Act 1974;
- an amalgamation of two or more friendly societies under section 85 of the Friendly Societies Act 1992;
- a transfer of engagements between registered societies under section 82 of the Friendly Societies Act 1974;
- a transfer of engagements between friendly societies under section 86 of the Friendly Societies Act 1992 (transfer of engagements by or to friendly society); or
- a transfer of the engagements of a friendly society pursuant to a direction given by the appropriate authority under section 90 of the Friendly Societies Act 1992.
‘The appropriate authority’ has the meaning given by section 119(1) of the Friendly Societies Act 1992.
‘Registered’, in relation to a friendly society, has the meaning given by section 111 of the Friendly Societies Act 1974.
Claiming the relief
To claim this relief see the guidance on 'How to make a LBTT return and pay tax' which is available separately on our website.
Ref ID
LBTT3036
Archive Date
Last updated