Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 Schedule 5 paragraph 11

Higher rates for individuals buying multiple dwellings

Schedule 5 paragraph 11 sets out when a land transaction involving an individual buying two or more dwellings in a single transaction is treated as a higher rates residential property transaction for Land Transaction Tax purposes.

• A transaction by an individual buyer whose purchase mainly consists of a major interest in two or more dwellings may attract the higher rates of Land Transaction Tax.
• The higher rates apply if either the buyer is acquiring at least two qualifying dwellings (paragraph 13) or the buyer already holds a major interest in another dwelling (paragraph 15).
• Where the buyer is replacing their main residence and an intermediate transaction arises under paragraph 18, that intermediate transaction is also treated as a higher rates transaction.
• Transactions involving dwellings that are subsidiary to a non-residential property (section 72(9) cases) are generally exempt from the higher rates, unless the pre-completion transaction rules in Schedule 13 apply.