Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 Schedule 21 paragraph 1

Compulsory purchase facilitating development

Schedule 21, paragraph 1 provides relief from land transaction tax where a buyer acquires land under a compulsory purchase order made for the purpose of facilitating development by another person.

• A compulsory purchase that facilitates development by another person is fully relieved from land transaction tax.
• The buyer must have made the compulsory purchase order themselves, and the purpose must be to enable a third party to carry out development.
• "Development" takes its meaning from section 55 of the Town and Country Planning Act 1990, which broadly covers building, engineering, mining or other operations, and material changes of use of land or buildings.
• It does not matter how the acquisition is ultimately completed — the relief applies even if the land is acquired by agreement rather than through the formal compulsory purchase process.