Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 6 paragraph 14

Overpayment relief following reconsideration of rent for the first five years of a lease

Schedule 6 paragraph 14 explains how a buyer can recover tax that has been overpaid where, on the reconsideration date, the actual rent for the first five years of the lease turns out to be less than was originally estimated.

• If the rent actually paid or payable for the first five years of a lease results in less LTT being due than was originally paid, the buyer may seek a refund of the overpaid amount.
• The buyer's first option is to amend the original tax return within the normal amendment period allowed under the legislation.
• If the amendment window has closed, the buyer can instead make a formal repayment claim under the Tax Collection and Management (Wales) Act 2016.
• A special extended time limit applies to such repayment claims: the claim must be made before the later of four years from the day after the filing date for the relevant return, or twelve months from the reconsideration date.