Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 15 paragraph 16

De-linking the trust declaration from later transactions

Schedule 15 paragraph 16 ensures that the initial declaration of a shared ownership trust is treated as a standalone transaction for tax purposes, unlinked to any subsequent equity-acquisition payments or the final transfer of the property to the buyer.

• The declaration of a shared ownership trust is assessed for tax on its own, not as part of a series of linked transactions.
• Any later equity-acquisition payments made by the buyer under the trust are not linked to the original declaration for tax calculation purposes.
• Any increase in the buyer's beneficial interest in the trust property resulting from those payments is similarly not linked to the declaration.
• The final transfer of the property interest to the buyer when the trust ends is also treated as unlinked to the original declaration.