Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 6 paragraph 17

Surrender and re-grant of leases between the same parties

Schedule 6 paragraph 17 provides that when a new lease is granted in exchange for the surrender of an existing lease between the same landlord and tenant, neither the grant nor the surrender is treated as chargeable consideration for the other, and the exchange rules do not apply.

• When a tenant surrenders an existing lease and the same landlord grants a new lease in return, neither transaction counts as chargeable consideration for the other.
• The grant of the new lease is not treated as consideration given for the surrender of the old lease.
• The surrender of the old lease is not treated as consideration given for the grant of the new lease.
• The general exchange rules in Schedule 4 paragraph 5 (which normally apply when land interests are swapped) are disapplied in these circumstances.