Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 Schedule 16 paragraph 13

Recovery of group relief from certain persons

Schedule 16, paragraph 13 sets out who can be held liable to pay unpaid land transaction tax when group relief has been withdrawn and the tax remains outstanding.

• Where group relief is withdrawn and the resulting tax charge has been finally determined but remains unpaid (in whole or part) six months after the payment date, the Welsh Revenue Authority (WRA) can pursue certain other persons for the debt.
• Those who may be required to pay are: the seller in the original transaction; any company that was in the same group as the buyer and was above it in the group hierarchy at any time between the transaction and the buyer leaving the group; and any controlling director of the buyer or of a company that controlled the buyer during that period.
• A company is considered "above" another in the group structure if the lower company (or a company above it) is a 75% subsidiary of the higher company.
• A tax charge is not treated as finally determined until neither the claim nor the amount can be varied any further — whether by review, appeal, or otherwise.

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