Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 4 paragraph 15

Inheritance tax payments not treated as chargeable consideration

Schedule 4 paragraph 15 provides that any inheritance tax borne by the buyer in connection with a land transaction arising from a lifetime gift or a death does not count as chargeable consideration for land transaction tax purposes.

• This rule applies where a land transaction arises either from a lifetime transfer of value (within the meaning of the Inheritance Tax Act 1984) or from a disposition on death, whether by will or under the rules of intestacy.
• If the buyer becomes liable to pay, agrees to pay, or actually pays any inheritance tax arising from that transfer or disposition, those amounts are disregarded when determining the chargeable consideration for the land transaction.
• This ensures that inheritance tax costs connected with receiving the property do not inflate the land transaction tax charge on the same acquisition.
• The provision covers all forms of buyer involvement with the inheritance tax liability — whether imposed by law, assumed by agreement, or simply paid voluntarily.