Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 3 paragraph 1

Exemption for transactions with no chargeable consideration

Schedule 3, paragraph 1 provides that a land transaction in Wales is exempt from Land Transaction Tax where no chargeable consideration is given for the transaction.

• A land transaction is exempt from LTT if there is no chargeable consideration (e.g. no money or other value is given in return for the land).
• This means that genuine gifts of land or property, where nothing of value passes to the person making the gift, fall outside the charge to LTT.
• However, the exemption is subject to the deemed market value rules in section 22 of the Act, which can override the exemption in certain circumstances.
• Where section 22 applies, the transaction is treated as if the consideration were the market value of the property, even if nothing was actually paid.