LBTT3040 - Public Bodies relief

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.