Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 15 paragraph 12

Election for market value treatment of shared ownership trusts

Schedule 15, paragraph 12 allows a buyer under a shared ownership trust to elect for land transaction tax to be calculated on the stated market value of the property, disregarding rent-equivalent payments.

• Where a shared ownership trust is declared, the buyer may elect for tax to be charged on the market value basis set out in this paragraph.
• The election must be included in the land transaction tax return for the grant of the lease (or in an amendment to that return), and once made it cannot be withdrawn.
• If the election is made, the chargeable consideration is taken to be the total market value of the property as stated in the shared ownership trust (as required by paragraph 10(5)(f)).
• Where the election applies, the rent-equivalent payments made by the buyer are disregarded entirely for the purposes of calculating land transaction tax.