LegalizeReform history
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017
19 versions
· 2017-05-24
2026-02-13
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2025-11-21
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2025-09-10
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2025-02-07
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2025-01-23
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2024-11-26
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
Changes on 2024-11-26
@@ -816,6 +816,8 @@
- Schedule 21 (compulsory purchase relief and planning obligation relief);
- Schedule 21A (relief for special tax sites);
- Schedule 22 (miscellaneous reliefs).
- (2) The following provisions of this Act provide relief from tax for certain land transactions (and accordingly if relief is claimed such transactions are not chargeable transactions)—
@@ -854,6 +856,8 @@
- paragraphs 1(1) and 2(1) of Schedule 21 (compulsory purchase relief and planning obligation relief);
- paragraph 6 of Schedule 21A (relief for special tax sites);
- Schedule 22 (miscellaneous reliefs).
- (3) The following provisions of this Act provide relief for certain chargeable transactions in the manner specified in the respective provision—
@@ -876,7 +880,9 @@
- Part 3 of Schedule 17 (acquisition relief);
- paragraphs 6 and 8 of Schedule 18 (partial charities relief in certain circumstances).
- paragraphs 6 and 8 of Schedule 18 (partial charities relief in certain circumstances);
- paragraph 7 of Schedule 21A (partial relief for special tax sites).
- (4) Any relief under the any of the provisions mentioned in subsections (2) and (3) (other than relief under paragraph 3 of Schedule 22 (visiting forces and international military headquarters reliefs)) must be claimed in the first return made in relation to the land transaction, or in an amendment of that return.
@@ -1382,7 +1388,9 @@
- (d) Schedule 17 (reconstruction or acquisition relief);
- (e) Schedule 18 (charities relief).
- (e) Schedule 18 (charities relief);
- (f) Schedule 21A (relief for special tax sites).
- (2) A return made under this section must—
@@ -1400,7 +1408,11 @@
- (d) in relation to the withdrawal of reconstruction relief or acquisition relief under Schedule 17, an event mentioned in paragraph 5(2) or 7(2) or (3) of that Schedule;
- (e) in relation to the withdrawal of charities relief under Schedule 18, a disqualifying event as defined in paragraph 2(4), 5(2) or 8(2) of that Schedule.
- (e) in relation to the withdrawal of charities relief under Schedule 18, a disqualifying event as defined in paragraph 2(4), 5(2) or 8(2) of that Schedule;
- (f) in relation to the withdrawal of relief for special tax sites under Schedule 21A, the last day in the control period on which the qualifying land ceases to be used exclusively in a qualifying manner in circumstances where the exceptions in sub-paragraphs (3), (4) and (5) of paragraph 10 of that Schedule do not apply.
- (3A) In subsection (3)(f), “control period”, “qualifying land” and “qualifying manner” are to be interpreted in accordance with Schedule 21A.
- (4) Despite section 157(3) of TCMA (late payment interest), the late payment interest start date in relation to an amount—
@@ -4759,9 +4771,11 @@
- (e) Schedule 18 (charities relief);
- (f) paragraph 1 of Schedule 20 (relief for certain acquisitions involving public bodies).
- (5) This paragraph does not apply where the relief in question is group relief, reconstruction or acquisition relief or charities relief and is withdrawn as a result of a disqualifying event occurring before the effective date of the assignment.
- (f) paragraph 1 of Schedule 20 (relief for certain acquisitions involving public bodies);
- (g) Schedule 21A (relief for special tax sites).
- (5) This paragraph does not apply where the relief in question is group relief, reconstruction or acquisition relief , charities relief or relief for special tax sites and is withdrawn as a result of a disqualifying event occurring before the effective date of the assignment.
- (6) For the purposes of sub-paragraph (5), “*"disqualifying event”*” means—
@@ -4769,7 +4783,11 @@
- (b) in relation to the withdrawal of reconstruction or acquisition relief, the change of control of the acquiring company mentioned in paragraph 5(2) of Schedule 17 or, as the case may be, the event mentioned in paragraph 7(2) or (3) of that Schedule;
- (c) in relation to the withdrawal of charities relief, a disqualifying event as defined in paragraph 2(4) or 5(2)(b) of Schedule 18.
- (c) in relation to the withdrawal of charities relief, a disqualifying event as defined in paragraph 2(4) or 5(2)(b) of Schedule 18;
- (d) in relation to the withdrawal of relief for special tax sites under Schedule 21A, the last day in the control period on which the qualifying land ceases to be used exclusively in a qualifying manner in circumstances where the exceptions in sub-paragraphs (3), (4) and (5) of paragraph 10 of that Schedule do not apply.
- (7) In sub-paragraph (6)(d), “control period”, “qualifying land” and “qualifying manner” are to be interpreted in accordance with Schedule 21A.
#### Assignment of lease
@@ -9912,19 +9930,19 @@
#### Overview of Act
#### Land transaction
#### Procedure for regulations specifying tax bands and tax rates
#### Land transaction tax
#### Regulations specifying tax bands and tax rates
#### Leases
#### Unit trust schemes
#### Notifiable transactions
#### Companies
#### Duty to make a return
#### General anti-avoidance rule
#### Meaning of major interest in land
#### Meaning of tax
The Schedules to this Act are arranged as follows—
@@ -11580,6 +11598,28 @@
[^key-885f17ffdbce6984af45967c331003a4]: [Sch. 5 para. 35(4)(e)](https://www.legislation.gov.uk/anaw/2017/1/schedule/5/paragraph/35/4/e) substituted (12.7.2024) by [The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2024 (S.I. 2024/791)](https://www.legislation.gov.uk/wsi/2024/791), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2024/791/regulation/1/2), [6(4)(b)](https://www.legislation.gov.uk/wsi/2024/791/regulation/6/4/b)
[^key-26f142cfc254fdfde6ebb1b7876ca76c]: Sch. 6 para. 22(7) inserted (26.11.2024) by [The Land Transaction Tax (Relief for Special Tax Sites) (Wales) Regulations 2024 (S.I. 2024/1193)](https://www.legislation.gov.uk/wsi/2024/1193), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/1/2), [2(4)(d)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/2/4/d)
[^key-b075d1615d927c9037531bd0c86a36a5]: [Sch. 21A](https://www.legislation.gov.uk/anaw/2017/1/schedule/21A) inserted (26.11.2024) by [The Land Transaction Tax (Relief for Special Tax Sites) (Wales) Regulations 2024 (S.I. 2024/1193)](https://www.legislation.gov.uk/wsi/2024/1193), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/1/2), [2(5)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/2/5)
[^key-06021151c08ed3a028277d7c4c808442]: Words in [s. 30(1)](https://www.legislation.gov.uk/anaw/2017/1/section/30/1) inserted (26.11.2024) by [The Land Transaction Tax (Relief for Special Tax Sites) (Wales) Regulations 2024 (S.I. 2024/1193)](https://www.legislation.gov.uk/wsi/2024/1193), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/1/2), [2(2)(a)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/2/2/a)
[^key-da175d0dd1183829b5cc5e4e17a9b1f0]: Words in [s. 30(2)](https://www.legislation.gov.uk/anaw/2017/1/section/30/2) inserted (26.11.2024) by [The Land Transaction Tax (Relief for Special Tax Sites) (Wales) Regulations 2024 (S.I. 2024/1193)](https://www.legislation.gov.uk/wsi/2024/1193), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/1/2), [2(2)(b)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/2/2/b)
[^key-b927bb487e79544cbe36fbdd1642e737]: Words in [s. 30(3)](https://www.legislation.gov.uk/anaw/2017/1/section/30/3) inserted (26.11.2024) by [The Land Transaction Tax (Relief for Special Tax Sites) (Wales) Regulations 2024 (S.I. 2024/1193)](https://www.legislation.gov.uk/wsi/2024/1193), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/1/2), [2(2)(c)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/2/2/c)
[^key-44e6282af5d530960dc553e134d003f5]: [S. 49(3A)](https://www.legislation.gov.uk/anaw/2017/1/section/49/3A) inserted (26.11.2024) by [The Land Transaction Tax (Relief for Special Tax Sites) (Wales) Regulations 2024 (S.I. 2024/1193)](https://www.legislation.gov.uk/wsi/2024/1193), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/1/2), [2(3)(c)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/2/3/c)
[^key-09613e1b0748eef4f788fb6e6aa7d976]: [S. 49(1)(f)](https://www.legislation.gov.uk/anaw/2017/1/section/49/1/f) inserted (26.11.2024) by [The Land Transaction Tax (Relief for Special Tax Sites) (Wales) Regulations 2024 (S.I. 2024/1193)](https://www.legislation.gov.uk/wsi/2024/1193), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/1/2), [2(3)(a)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/2/3/a)
[^key-47cefa21533319b3ec1fc773f29855fc]: [S. 49(3)(f)](https://www.legislation.gov.uk/anaw/2017/1/section/49/3/f) inserted (26.11.2024) by [The Land Transaction Tax (Relief for Special Tax Sites) (Wales) Regulations 2024 (S.I. 2024/1193)](https://www.legislation.gov.uk/wsi/2024/1193), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/1/2), [2(3)(b)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/2/3/b)
[^key-bbd0d0b6a5ee5440c61d03f7d6a9a6ec]: [Sch. 6 para. 22(4)(g)](https://www.legislation.gov.uk/anaw/2017/1/schedule/6/paragraph/22/4/g) inserted (26.11.2024) by [The Land Transaction Tax (Relief for Special Tax Sites) (Wales) Regulations 2024 (S.I. 2024/1193)](https://www.legislation.gov.uk/wsi/2024/1193), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/1/2), [2(4)(a)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/2/4/a)
[^key-b6027d1ef501f78834cf57e65c99be62]: Words in [Sch. 6 para. 22(5)](https://www.legislation.gov.uk/anaw/2017/1/schedule/6/paragraph/22/5) substituted (26.11.2024) by [The Land Transaction Tax (Relief for Special Tax Sites) (Wales) Regulations 2024 (S.I. 2024/1193)](https://www.legislation.gov.uk/wsi/2024/1193), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/1/2), [2(4)(b)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/2/4/b)
[^key-436fb16b52e6fbe7f8da181116138b5a]: [Sch. 6 para. 22(6)(d)](https://www.legislation.gov.uk/anaw/2017/1/schedule/6/paragraph/22/6/d) inserted (26.11.2024) by [The Land Transaction Tax (Relief for Special Tax Sites) (Wales) Regulations 2024 (S.I. 2024/1193)](https://www.legislation.gov.uk/wsi/2024/1193), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/1/2), [2(4)(c)](https://www.legislation.gov.uk/wsi/2024/1193/regulation/2/4/c)
### Meaning of “charity”
##### 2A
@@ -11651,3 +11691,209 @@
- “*relevant restriction*” (“**cyfyngiad perthnasol**”) means a prohibition or restriction of any activity by an enactment, or by a public authority by virtue of an enactment, for the purpose of preventing, controlling or mitigating the effects of an emergency.
- (2) In sub-paragraph (1) “*relevant restriction*” does not include a prohibition or restriction that ceased to have effect before 12 July 2024.
## SCHEDULE 21A
## PART 1 — Key terms
### Meaning of transaction land
##### 1
In this Schedule, “*transaction land*”, in relation to a land transaction, means land a chargeable interest in which is the subject matter of the transaction.
### Meaning of special tax site
##### 2
In this Schedule, “*special tax site*” means the area designated as a special area by the Designation of Special Tax Sites (Celtic Freeport) Regulations 2024 as made on 16 October 2024.
### Meaning of qualifying land
##### 3
For the purposes of this Schedule, transaction land is “qualifying land” if, on the effective date of the land transaction—
- (a) it is situated in a special tax site, and
- (b) the buyer intends it to be used exclusively in a qualifying manner.
### Meaning of qualifying manner
##### 4
- (1) For the purposes of this Schedule, transaction land is used in a qualifying manner if it is used in one or more of the following ways—
- (a) it is used by the buyer or a connected person in the course of a commercial trade or profession;
- (b) it is developed or redeveloped by the buyer or a connected person for use (by any person) in the course of a commercial trade or profession;
- (c) it is exploited by the buyer or a connected person, in the course of a commercial trade or profession, as a source of rents or other receipts (other than excluded rents).
- (2) But transaction land is not used in a qualifying manner to the extent that it is—
- (a) used as a dwelling or as the garden or grounds of a dwelling (including any building or other structure on such land),
- (b) developed or redeveloped to become residential property,
- (c) exploited as a source of rents or other receipts payable by a person using the land otherwise than in a qualifying manner, or
- (d) held (as stock of the business) for resale without development or redevelopment.
- (3) Despite sub-paragraph (2), transaction land is used in a qualifying manner to the extent it is used as a dwelling or as the garden or grounds of a dwelling that is provided to an individual and the individual’s family for the better performance of the individual’s employment duties as caretaker of, or as a member of the security staff for, the transaction land or any part of it.
- (4) For the purposes of this paragraph, use of land in the course of a commercial trade or profession includes use of land for a purpose that is ancillary to the use of other land which—
- (a) is situated in a special tax site, and
- (b) is being used, or developed or redeveloped, in the course of a commercial trade or profession.
- (5) The references in this paragraph to doing something in the course of a commercial trade or profession include doing something in the course of a property rental business.
- (6) In this paragraph—
- “*commercial*” (“**masnachol**”) in relation to a trade or profession, means carried on—on a commercial basis, andwith a view to profit;
- “*excluded rents*” (“**rhenti wedi eu heithrio**”) means income within any of classes 1 to 6 in the table in section 605(2) of the Corporation Tax Act [2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4);
- “*property rental business*” (“**busnes rhentu eiddo**”) has the same meaning as a “property business” in the Income Tax (Trading and Other Income) Act [2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5) (see section 263(6) of that Act).”
## PART 2 — The Relief
### Meaning of relief period
##### 5
In this Part, the “*relief period*” means the period beginning with 26 November 2024 and ending with 30 September 2029.
### Full relief
##### 6
- (1) This paragraph applies if—
- (a) 100% of the chargeable consideration for a land transaction is attributable to qualifying land, and
- (b) the effective date of the transaction is within the relief period.
- (2) The land transaction is relieved from tax.
### Partial relief
##### 7
- (1) This paragraph applies if—
- (a) the proportion of the chargeable consideration for a land transaction attributable to qualifying land (“the relevant proportion”) is less than 100%, and
- (b) the effective date of the transaction is within the relief period.
- (2) The tax chargeable in respect of the land transaction is reduced by a proportion equivalent to the relevant proportion.
### Attributing chargeable consideration to land
##### 8
- (1) For the purposes of this Schedule, the consideration attributable to qualifying land must be determined on a just and reasonable basis.
- (2) Sub-paragraphs (3) and (4) apply if less than 100% of the chargeable consideration attributable to transaction land situated in a special tax site (“the tax site consideration”) is attributable to land that satisfies the condition in paragraph 3(b).
- (3) If at least 90% of the tax site consideration is attributable to land that satisfies the condition in paragraph 3(b), then, for the purposes of this Schedule, all of the tax site consideration is to be treated as being attributable to qualifying land.
- (4) If less than 10% of the tax site consideration is attributable to land that satisfies the condition in paragraph 3(b), then, for the purposes of this Schedule, all of the tax site consideration is to be treated as not being attributable to qualifying land.
### Contract completed by transfer after the end of the relief period
##### 9
- (1) This paragraph applies if—
- (a) a land transaction is treated as effected under section 10(4) as a result of a contract being substantially performed without having been completed,
- (b) that transaction is relieved from tax under paragraph 6 or 7, and
- (c) the contract mentioned in paragraph (a) is subsequently completed by a transfer after the end of the relief period.
- (2) Section 10(5)(b) does not apply in relation to the transaction mentioned in sub-paragraph (1)(c) if the sole reason that it would have applied (but for this paragraph) is that the transaction occurred after the end of the relief period.
- (3) In this paragraph, “completed”, “contract” and “transfer” are to be interpreted in accordance with section 10(10).
## PART 3 — Withdrawal of relief
### Withdrawal of relief
##### 10
- (1) In this Part, a transaction that is relieved from tax under Part 2 is referred to as a “*relieved transaction*”; and accordingly references to a “buyer” and “qualifying land” are references to the buyer and the qualifying land in the relieved transaction.
- (2) Relief is withdrawn in relation to a relieved transaction if, at any time during the control period, the qualifying land is not used exclusively in a qualifying manner.
- (3) But the relief is not withdrawn where, because of a change in circumstances that is unforeseen and beyond the buyer’s control, it is not reasonable to expect the qualifying land to be used exclusively in a qualifying manner at that time.
- (4) Where, at a time during the control period, the use of all or part of the qualifying land in a qualifying manner has not yet begun, that land, or that part of the land, is to be treated as being used exclusively in a qualifying manner if reasonable steps are being taken to ensure that it is used in that manner.
- (5) Where, at a time during the control period, the use of all or part of the qualifying land in a qualifying manner has ceased, that land, or that part of the land, is to be treated as being used exclusively in a qualifying manner if reasonable steps are being taken—
- (a) to ensure that it is used in that manner, or
- (b) to dispose of all chargeable interests in that land, or that part of the land, that are held by the buyer and connected persons in a timely manner.
### The control period
##### 11
- (1) In this Schedule, the “*control period*”, in relation to a relieved transaction, means the shorter of—
- (a) the period of 3 years beginning with the effective date of that transaction, and
- (b) the period beginning with the effective date of that transaction and ending with the effective date of the final transaction.
- (2) For the purposes of this paragraph, a land transaction is the final transaction if, immediately after the effective date of the transaction, neither the buyer nor a connected person holds a chargeable interest in the qualifying land (whether as a result of that transaction alone or as a result of that transaction and other land transactions).
- (3) For the purposes of sub-paragraph (2), the buyer or a connected person is treated as not having a chargeable interest in the qualifying land if the market value of the chargeable interest in the qualifying land that the buyer or a connected person holds is less than £40,000, unless sub-paragraph (4) applies.
- (4) This sub-paragraph applies if—
- (a) the buyer and any connected person hold between them more than one chargeable interest in the qualifying land, and
- (b) the total market value of those chargeable interests is £40,000 or more.
### Disposal of interest in part of qualifying land during control period
##### 12
- (1) This paragraph applies where the buyer ceases to hold a chargeable interest in part of the qualifying land during the control period.
- (2) The references in paragraphs 10 and 11 to the qualifying land are to be treated as references only to the part of the qualifying land in relation to which the buyer still holds a chargeable interest (whether the chargeable interest acquired in the land transaction relieved from tax under Part 2 of this Schedule or another chargeable interest).
## PART 4 — ALTERNATIVE FINANCE ARRANGEMENT
### Alternative Property Finance
##### 13
- (1) This paragraph applies where either of the following applies—
- (a) paragraph 2(1) of Schedule 10 (land sold to financial institution and leased to a person), or
- (b) paragraph 3(1) of Schedule 10 (land sold to financial institution and re-sold to a person).
- (2) This paragraph applies for the purposes of determining—
- (a) whether relief can be claimed under Part 2 of this Schedule for the first transaction, and
- (b) whether relief for the first transaction is withdrawn under Part 3 of this Schedule.
- (3) For those purposes, this Schedule has effect as if—
- (a) references to the buyer were references to the relevant person, and
- (b) the reference in paragraph 4(2)(d) to land held (as stock for the business) for resale without development or redevelopment were a reference to land held in that manner by the relevant person.
- (4) The first transaction does not qualify for relief under Part 2 of this Schedule except where it does so by virtue of this paragraph.
- (5) In this paragraph—
- “*the first transaction*” (“**y trafodiad cyntaf**”) has the same meaning as in paragraph 2 or 3 of Schedule 10 (as appropriate);
- “*the relevant person*” (“**y person perthnasol**”) means the person, other than the financial institution, who entered into the arrangements mentioned in paragraph 2 or 3 of Schedule 10 (as appropriate).
2024-07-12
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2022-09-09
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2021-04-01
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2021-01-21
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2020-12-31
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2020-07-27
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2019-04-03
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2019-01-26
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2018-04-01
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2018-01-25
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2017-10-18
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2017-05-25
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2017-05-24
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Ac
original version
Text at this date