Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 Schedule 2 paragraph 1

Introduction to pre-completion transactions

Schedule 2 paragraph 1 introduces the Schedule dealing with pre-completion transactions and provides a guide to its structure.

• The Schedule governs how the Act applies to pre-completion transactions — transactions that take place between contract and completion of a land deal.
• The Schedule covers two main types of pre-completion transaction: assignments of rights (where someone passes on their rights under a contract) and free-standing transfers (where the transaction is structured differently from a simple assignment).
• A special minimum consideration rule applies where the parties to a pre-completion transaction are connected persons or are not dealing at arm's length, to ensure the tax is calculated on a fair value.
• Relief may be available to certain buyers where particular pre-completion transactions have taken place.