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Reform 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

View changes Text at this date

Changes on 2026-02-13

@@ -3227,9 +3227,11 @@

- (5) This paragraph applies subject to the exceptions provided for in—

- (a) paragraph 7 (interest in same main residence exception), and

- (b) paragraph 8 (replacement of main residence exception).

- (a) paragraph 7 (interest in same main residence exception), ...

- (b) paragraph 8 (replacement of main residence exception) and,

- (c) paragraph 9A (subsequent disposal to local authorities exception).

- (6) In this Part of this Schedule, “*"purchased dwelling”*” has the meaning given by sub-paragraph (2)(b).

@@ -3497,6 +3499,8 @@

- (5) A purchased dwelling is not a qualifying dwelling if the exception provided for in paragraph 14 applies (subsidiary dwelling exception).

- (6) This paragraph applies subject to the exception in paragraph 18A (subsequent disposal to local authorities exception).

#### Subsidiary dwelling exception

##### 14

@@ -3553,9 +3557,11 @@

- (7) This paragraph applies subject to the exceptions provided for in—

- (a) paragraph 16 (interest in same main residence exception), and

- (b) paragraph 17 (replacement of main residence exception).

- (a) paragraph 16 (interest in same main residence exception), ...

- (b) paragraph 17 (replacement of main residence exception) and

- (c) paragraph 18A (subsequent disposal to local authorities exception).

#### Interest in same main residence exception

@@ -3733,7 +3739,13 @@

- (c) the chargeable consideration for the dwelling is £40,000 or more.

- (2) But a transaction is not a higher rates residential property transaction under sub-paragraph (1) if at the end of the day that is the effective date of the transaction—

- (1A) Sub-paragraph (1) applies subject to the exceptions in—

- (a) sub-paragraph (2), and

- (b) paragraph 20A (subsequent disposal to local authorities exception).

- (2) ... A transaction is not a higher rates residential property transaction under sub-paragraph (1) if at the end of the day that is the effective date of the transaction—

- (a) the purchased dwelling is subject to a lease,

@@ -3776,6 +3788,8 @@

- (b) the lease has an unexpired term of more than 21 years.

- (5) A transaction within section 72(9) is not a higher rates residential property transaction save where Schedule 13 applies (see in particular paragraph 6(6) of that Schedule).

- (5A) This paragraph applies subject to paragraph 21A (subsequent disposal to local authorities exception).

#### Two or more buyers

@@ -6893,7 +6907,7 @@

- *Step 4* Multiply the amount found at Step 2 by—$CD TDC$Figure 12 where—““CD”” is the consideration attributable to dwellings for the relevant transaction, and““TDC”” is total dwellings consideration.

- (2) But if the amount found at Step 2 of sub-paragraph (1) is less than 1% of total dwellings consideration, for the purposes of paragraph 5(1)(a) ““the tax related to the consideration attributable to dwellings”” is an amount equal to 1% of the consideration attributable to dwellings.

- (2) But if the amount found at Step 2 of sub-paragraph (1) is less than 3% of total dwellings consideration, for the purposes of paragraph 5(1)(a) ““the tax related to the consideration attributable to dwellings”” is an amount equal to 3% of the consideration attributable to dwellings.

- (3) ”Total dwellings consideration” means—

@@ -9930,19 +9944,19 @@

#### Overview of Act

#### Land transaction tax

#### Regulations specifying tax bands and tax rates

#### Land transaction

#### Procedure for regulations specifying tax bands and tax rates

#### Leases

#### Companies

#### Duty to make a return

#### Unit trust schemes

#### Notifiable transactions

#### General anti-avoidance rule

#### Meaning of tax

#### Meaning of major interest in land

The Schedules to this Act are arranged as follows—

@@ -11646,6 +11660,38 @@

[^key-e0ff57a882014743e5f4078cec4ee783]: [Sch. 21A para. 5(d)](https://www.legislation.gov.uk/anaw/2017/1/schedule/21A/paragraph/5/d) inserted (21.11.2025 at 12.01 a.m.) by [The Land Transaction Tax (Modification of Special Tax Sites Relief) (No. 3) (Wales) Regulations 2025 (S.I. 2025/1210)](https://www.legislation.gov.uk/wsi/2025/1210), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2025/1210/regulation/1/2), [2(3)](https://www.legislation.gov.uk/wsi/2025/1210/regulation/2/3)

[^key-88d97598f2e0bd09d25cde5c63e88aa9]: Sch. 5 para. 9A and cross-heading inserted (13.2.2026) by [The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026 (W.S.I. 2026/42)](https://www.legislation.gov.uk/wsi/2026/42), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2026/42/regulation/1/2), [2(3)](https://www.legislation.gov.uk/wsi/2026/42/regulation/2/3)

[^key-214c1135531d5edf7f500e620e898a71]: Sch. 5 para. 18A and cross-heading inserted (13.2.2026) by [The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026 (W.S.I. 2026/42)](https://www.legislation.gov.uk/wsi/2026/42), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2026/42/regulation/1/2), [3(4)](https://www.legislation.gov.uk/wsi/2026/42/regulation/3/4)

[^key-d65ca41eb3b45a4235e8e4bbb0a9975d]: Sch. 5 para. 20A and cross-heading inserted (13.2.2026) by [The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026 (W.S.I. 2026/42)](https://www.legislation.gov.uk/wsi/2026/42), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2026/42/regulation/1/2), [4(3)](https://www.legislation.gov.uk/wsi/2026/42/regulation/4/3)

[^key-d4833e776cfc093fde84234bbc0c1b78]: Sch. 5 para. 21A and cross-heading inserted (13.2.2026) by [The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026 (W.S.I. 2026/42)](https://www.legislation.gov.uk/wsi/2026/42), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2026/42/regulation/1/2), [4(5)](https://www.legislation.gov.uk/wsi/2026/42/regulation/4/5)

[^key-33dc487dfbaeba31670b13b6615f75f8]: Sch. 5 para. 38 heading substituted (13.2.2026) by [The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026 (W.S.I. 2026/42)](https://www.legislation.gov.uk/wsi/2026/42), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2026/42/regulation/1/2), [6(2)](https://www.legislation.gov.uk/wsi/2026/42/regulation/6/2)

[^key-3e07852d2ed958b583305ed19fc74069]: Sch. 5 paras. 23A, 23B and cross-heading inserted (13.2.2026) by [The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026 (W.S.I. 2026/42)](https://www.legislation.gov.uk/wsi/2026/42), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2026/42/regulation/1/2), [5(2)](https://www.legislation.gov.uk/wsi/2026/42/regulation/5/2)

[^key-f85b047a52a6b9f49ecf97cce621f302]: Sch. 5 para. 13(6) inserted (13.2.2026) by [The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026 (W.S.I. 2026/42)](https://www.legislation.gov.uk/wsi/2026/42), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2026/42/regulation/1/2), [3(2)](https://www.legislation.gov.uk/wsi/2026/42/regulation/3/2)

[^key-82b5c59e737e474af4aca5424be7a8e3]: Sch. 5 para. 21(5A) inserted (13.2.2026) by [The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026 (W.S.I. 2026/42)](https://www.legislation.gov.uk/wsi/2026/42), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2026/42/regulation/1/2), [4(4)](https://www.legislation.gov.uk/wsi/2026/42/regulation/4/4)

[^key-708f9793d15e888c4d9dbfe1a8172d33]: Words in Sch. 5 para. 38 inserted (13.2.2026) by [The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026 (W.S.I. 2026/42)](https://www.legislation.gov.uk/wsi/2026/42), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2026/42/regulation/1/2), [6(3)](https://www.legislation.gov.uk/wsi/2026/42/regulation/6/3)

[^key-be420de7e8fc996fa3c9e327555ae628]: Word in Sch. 13 para. 6(2) substituted (13.2.2026) by [The Land Transaction Tax (Modification of Relief for Acquisitions Involving Multiple Dwellings) (Wales) Regulations 2026 (W.S.I. 2026/40)](https://www.legislation.gov.uk/wsi/2026/40), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2026/40/regulation/1/2), [2](https://www.legislation.gov.uk/wsi/2026/40/regulation/2) (with [reg. 3](https://www.legislation.gov.uk/wsi/2026/40/regulation/3))

[^key-3d9e0432299e54c25f86e89c506edce2]: Word in Sch. 5 para. 3(5)(a) omitted (13.2.2026) by virtue of [The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026 (W.S.I. 2026/42)](https://www.legislation.gov.uk/wsi/2026/42), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2026/42/regulation/1/2), [2(2)(a)](https://www.legislation.gov.uk/wsi/2026/42/regulation/2/2/a)

[^key-70d338f2536bac1b6b26c555843ca299]: Sch. 5 para. 3(5)(c) and word inserted (13.2.2026) by [The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026 (W.S.I. 2026/42)](https://www.legislation.gov.uk/wsi/2026/42), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2026/42/regulation/1/2), [2(2)(b)](https://www.legislation.gov.uk/wsi/2026/42/regulation/2/2/b)

[^key-34375e5c47acf70f6a594428250d6dad]: Word in Sch. 5 para. 15(7)(a) omitted (13.2.2026) by virtue of [The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026 (W.S.I. 2026/42)](https://www.legislation.gov.uk/wsi/2026/42), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2026/42/regulation/1/2), [3(3)(a)](https://www.legislation.gov.uk/wsi/2026/42/regulation/3/3/a)

[^key-801dd0907573aa7962d549f8f567394c]: Sch. 5 para. 15(7)(c) and word inserted (13.2.2026) by [The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026 (W.S.I. 2026/42)](https://www.legislation.gov.uk/wsi/2026/42), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2026/42/regulation/1/2), [3(3)(b)](https://www.legislation.gov.uk/wsi/2026/42/regulation/3/3/b)

[^key-d0a781523eed0a6d196e5ea692292599]: Sch. 5 para. 20(1A) inserted (13.2.2026) by [The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026 (W.S.I. 2026/42)](https://www.legislation.gov.uk/wsi/2026/42), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2026/42/regulation/1/2), [4(2)(a)](https://www.legislation.gov.uk/wsi/2026/42/regulation/4/2/a)

[^key-2024ecf386ba63ecc94b98225a55f529]: Word in Sch. 5 para. 20(2) omitted (13.2.2026) by virtue of [The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026 (W.S.I. 2026/42)](https://www.legislation.gov.uk/wsi/2026/42), [regs. 1(2)](https://www.legislation.gov.uk/wsi/2026/42/regulation/1/2), [4(2)(b)](https://www.legislation.gov.uk/wsi/2026/42/regulation/4/2/b)

### Meaning of “charity”

##### 2A

@@ -11704,7 +11750,7 @@

- (b) it is just and reasonable in all the circumstances for the condition to be treated as met throughout the period.

### Meaning of emergency, public authority and relevant restriction

### Other definitions

##### 38

@@ -11712,6 +11758,10 @@

- “*emergency*” (“**argyfwng**”) has the meaning given by section 19 of the Civil Contingencies Act [2004 (c. 36)](https://www.legislation.gov.uk/ukpga/2004/36) and is not restricted to events or situations in relation to which powers are exercised under that Act;

- “*local authority*” (“**awdurdod lleol**”) means a council of a county or county borough constituted under section 21 of the Local Government Act [1972 (c. 70)](https://www.legislation.gov.uk/ukpga/1972/70);

- “*local housing allowance*” (“*lwfans tai lleol”)*means the allowance determined in accordance with paragraph 2 of Schedule 3B to the Rent Officers (Housing Benefit Functions) Order 1997 ([S.I. 1997/1984](https://www.legislation.gov.uk/uksi/1997/1984));

- “*public authority*” (“**awdurdod cyhoeddus**”) means a person carrying out a function of a public nature;

- “*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.

@@ -11967,3 +12017,223 @@

- (4) For the purposes of this paragraph, a purchased dwelling (“dwelling A”) is subsidiary to a qualifying dwelling (“dwelling B”) if dwelling A would be subsidiary to dwelling B for the purposes of Schedule 5 (see paragraph 14 of that Schedule).

- (5) In this paragraph, “*qualifying dwelling*” means a dwelling that is a qualifying dwelling for the purposes of Part 3 of Schedule 5 (see paragraph 13 of that Schedule).

### Subsequent disposal to local authorities exception: buyer is an individual in a single dwelling transaction

##### 9A

- (1) This paragraph applies to a transaction (“*the acquisition transaction*”)—

- (a) that is a higher rates residential property transaction under paragraph 3,

- (b) the effective date of which is during the period beginning with 13 February 2026 and ending with 31 March 2031, and

- (c) the chargeable consideration for which is £400,000 or less.

- (2) The acquisition transaction ceases to be a higher rates residential property transaction under paragraph 3 if—

- (a) in another transaction (“*the disposal transaction*”) the buyer in the acquisition transaction grants a lease of the purchased dwelling (“*the leased dwelling*”) to a local authority,

- (b) the lease is for a term of at least 5 years but not more than 20 years,

- (c) the rent payable under the lease is no greater than the maximum local housing allowance applicable at the effective date of the disposal transaction in respect of the leased dwelling, and

- (d) the effective date of the disposal transaction is during the period of 18 months beginning with the effective date of the acquisition transaction.

- (3) If the lease granted in the disposal transaction is terminated by the buyer in the acquisition transaction before the 5th anniversary of the effective date of the disposal transaction, sub-paragraph (2) is treated as if it never applied to the acquisition transaction.

- (4) For further provision in connection with—

- (a) a transaction to which sub-paragraph (2) applies, see paragraph 23A;

- (b) a transaction to which sub-paragraph (3) applies, see paragraph 23B.

- (5) For the purposes of sub-paragraph (2), paragraph 20(1) of Schedule 6 (agreement for lease that is substantially performed is treated as a grant of a lease) does not apply.

### Subsequent disposal to local authorities exception: multiple dwelling transactions

##### 18A

- (1) This paragraph applies to a transaction (“*the acquisition transaction*”)—

- (a) that is a higher rates residential property transaction under paragraph 11, and

- (b) the effective date of which is during the period beginning with 13 February 2026 and ending with 31 March 2031.

- (2) Sub-paragraph (4) applies to the acquisition transaction if—

- (a) in another transaction (“*the disposal transaction*”) the buyer in the acquisition transaction grants a lease of one or more of the purchased dwellings that consisted of the main subject-matter of the acquisition transaction (“*leased dwelling*”) to a local authority,

- (b) the chargeable consideration attributable to the leased dwelling or each leased dwelling (as the case may be) is £400,000 or less,

- (c) the lease is for a term of at least 5 years but not more than 20 years,

- (d) the rent payable under the lease is no greater than the maximum local housing allowance applicable at the effective date of the disposal transaction in respect of the leased dwelling or each leased dwelling (as the case may be), and

- (e) the effective date of the disposal transaction is during the period of 18 months beginning with the effective date of the acquisition transaction.

- (3) For the purpose of sub-paragraph (2)(b), the chargeable consideration attributable to a leased dwelling is so much of the chargeable consideration for the acquisition transaction that is attributable, on a just and reasonable basis, to the interest in that leased dwelling.

- (4) The tax chargeable in respect of the acquisition transaction is reduced by the relevant amount.

- (5) If the disposal transaction is the grant of a lease of a single leased dwelling, the “*relevant amount*” is the difference between—

- (a) the tax that would have been chargeable under section 27 in respect of the interest in the leased dwelling had it been the main subject-matter of a separate chargeable transaction (“*the notional transaction*”) that was a higher rates residential property transaction for the purposes of regulations under section 24(1)(b), and

- (b) the tax that would have been chargeable under section 27 on the same notional transaction were it a residential property transaction for the purposes of regulations under section 24(1)(a).

- (6) If the disposal transaction is the grant of a lease of more than one leased dwelling, the “*relevant amount*” is the difference between—

- (a) the sum of the amounts of tax that would have been chargeable under section 27 in respect of the interest in each leased dwelling had each interest been the main subject-matter of separate chargeable transactions (“*the notional transactions*”) and each notional transaction were a higher rates residential property transaction for the purposes of regulations under section 24(1)(b), and

- (b) the sum of the amounts of tax that would have been chargeable under section 27 on the same notional transactions were they residential property transactions for the purposes of regulations under section 24(1)(a).

- (7) For the purposes of determining the tax that would have been chargeable under sub-paragraphs (5)(a) and (5)(b) or (6)(a) and (6)(b) (as the case may be), the chargeable consideration for a notional transaction is the amount determined under sub-paragraph (3) in respect of the leased dwelling the interest in which is treated as being the main subject-matter of the notional transaction.

- (8) If the lease granted in the disposal transaction is terminated by the buyer in the acquisition transaction before the 5th anniversary of the effective date of the disposal transaction, sub-paragraph (4) is treated as if it never applied to the acquisition transaction.

- (9) For further provision in connection with—

- (a) a transaction to which sub-paragraph (4) applies, see paragraph 23A;

- (b) a transaction to which sub-paragraph (8) applies, see paragraph 23B.

- (10) For the purposes of sub-paragraph (2), paragraph 20(1) of Schedule 6 (agreement for lease that is substantially performed is treated as a grant of a lease) does not apply.

### Subsequent disposal to local authorities exception: transaction involving a dwelling

##### 20A

- (1) This paragraph applies to a transaction (“*the acquisition transaction*”)—

- (a) that is a higher rates residential property transaction under paragraph 20,

- (b) the effective date of which is during the period beginning with 13 February 2026 and ending with 31 March 2031, and

- (c) the chargeable consideration for which is £400,000 or less.

- (2) The acquisition transaction ceases to be a higher rates residential property transaction under paragraph 20 if—

- (a) in another transaction (“*the disposal transaction*”) the buyer in the acquisition transaction grants a lease of the purchased dwelling (“*the leased dwelling*”) to a local authority,

- (b) the lease is for a term of at least 5 years but not more than 20 years,

- (c) the rent payable under the lease is no greater than the maximum local housing allowance applicable at the effective date of the disposal transaction in respect of the leased dwelling, and

- (d) the effective date of the disposal transaction is during the period of 18 months beginning with the effective date of the acquisition transaction.

- (4) For further provision in connection with—

- (a) a transaction to which sub-paragraph (2) applies, see paragraph 23A;

- (b) a transaction to which sub-paragraph (3) applies, see paragraph 23B.

- (5) For the purposes of sub-paragraph (2), paragraph 20(1) of Schedule 6 (agreement for lease that is substantially performed is treated as a grant of a lease) does not apply.

### Subsequent disposal to local authorities exception: transaction involving multiple dwellings

##### 21A

- (1) This paragraph applies to a transaction (“*the acquisition transaction*”)—

- (a) that is a higher rates residential property transaction under paragraph 21, and