Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 15 paragraph 17

Rent to shared ownership trust schemes

Schedule 15 paragraph 17 sets out how the chargeable consideration is determined for transactions that form part of a rent to shared ownership trust scheme, ensuring that the individual transactions within the scheme are not treated as linked.

• A rent to shared ownership trust scheme involves a qualifying body first granting an occupation contract (tenancy) for a dwelling and then the tenant later becoming the buyer under a shared ownership trust of that or another dwelling.
• The grant of the occupation contract, the declaration of the shared ownership trust, and any other land transactions between the qualifying body and the tenant under the scheme are all treated as if they are not linked to each other.
• Treating these transactions as unlinked means each is assessed for land transaction tax on its own merits, rather than having their consideration aggregated, which could otherwise push them into higher tax bands.
• An occupation contract has the meaning given by Part 2 of the Renting Homes (Wales) Act 2016, which is the standard form of tenancy arrangement in Wales.