This relief is provided by the provisions of schedule 16 to the LBTT(S)A 2013.
Description of relief
Where a land transaction occurs as the result of a statutory reorganisation, and both the buyer and the seller are public bodies, the buyer may claim relief from LBTT.
For the purposes of the relief ‘reorganisation’ means changes involving:
- the establishment, reform or abolition of one or more public bodies;
- the creation, alteration or abolition of functions to be discharged by one or more public bodies; or
- the transfer of functions from one public body to another.
For the purposes of the relief, a ‘public body’ means:
- the Scottish Ministers;
- a Minister of the Crown;
- the Scottish Parliamentary Corporate Body;
- a local authority;
- the common service agency established under section 10(1) of the National Health Service (Scotland) Act 1978;
- a health board established under section 2(1)(a) of that Act;
- Healthcare Improvement Scotland established under section 10A of that Act;
- a special health board established under section 2(1)(b) of that Act;
- any other authority that is a planning authority for any purposes of the planning Acts within the means of the Town and Country Planning (Scotland) Act 1997;
- a body (other than a company) that is established by or under an enactment for the purpose of carrying out functions conferred on it by or under an enactment;
- any company in which all the shares are owned by any of the above; and
- any wholly owned subsidiary of such a company.
In this context, a ‘company’ is a company as defined by section 1 of the Companies Act 2006.
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.