Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 15 paragraph 14

Relief from tax for equity-acquisition payments under shared ownership trusts

Schedule 15 paragraph 14 sets out when equity-acquisition payments made under a shared ownership trust, and the resulting increase in the buyer's beneficial interest, are relieved from land transaction tax.

• Equity-acquisition payments under a shared ownership trust can be relieved from LTT in two circumstances.
• The first route to relief applies where a market value election has been made under paragraph 12 and any tax due on the original declaration of trust has been paid.
• The second route to relief applies regardless of any election, provided the buyer's beneficial interest after the payment does not exceed 80% of the total beneficial interest in the trust property.
• Both routes ensure that staircasing payments by shared ownership buyers are not subject to additional LTT charges, subject to the relevant conditions being met.