Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 6 paragraph 12

Reconsideration date for variable or uncertain rent

Schedule 6 paragraph 12 requires the buyer (tenant) in a lease transaction to redetermine the actual rent paid or payable for the first five years of the lease term once the reconsideration date is reached, where the rent was initially contingent, uncertain, or unascertained.

• Where rent under a lease was originally contingent, uncertain, or unascertained, the tenant must determine the actual rent for the first five years of the lease on the reconsideration date.
• The reconsideration date is either the end of the fifth year of the lease term or an earlier date when the rent ceases to be uncertain — whichever comes first.
• Rent ceases to be uncertain when a contingency occurs (or clearly will not occur), or when an uncertain or unascertained amount becomes ascertained.
• Once the actual rent is determined, paragraphs 13 and 14 provide for adjustment of the LTT payable — covering both underpayments and overpayments — on the original transaction and any linked transactions.