Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 4 paragraph 18

Sale and leaseback arrangements involving qualifying bodies

Schedule 4 paragraph 18 provides special rules for calculating chargeable consideration where a qualifying body (such as a public body or higher education institution) transfers land to a non-qualifying body under a sale and leaseback arrangement that includes an obligation to carry out works or provide services.

• Where a qualifying body transfers land and leases it back under an arrangement that includes works or services, certain elements are excluded from chargeable consideration on both sides of the transaction.
• Qualifying bodies include public bodies listed in Schedule 20, further education and higher education institutions, and further or higher education corporations as defined by the Further and Higher Education Act 1992.
• For the land transfer (and any surplus land transfer), the leaseback itself, any building works carried out, and any services provided by the non-qualifying body do not count as chargeable consideration; for the leaseback, the land transfer, any surplus land transfer, and money paid for the works or services are similarly excluded.
• These exclusions from chargeable consideration are ignored when determining whether the transaction is notifiable — so a transaction may still need to be reported to the Welsh Revenue Authority even though the chargeable consideration has been reduced by these rules.