Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 5 paragraph 18

Intermediate transactions during the interim period

Schedule 5, paragraph 18 deals with situations where a buyer purchases multiple dwellings in one transaction during the period between selling their old main residence and buying a replacement — and how this affects the higher rates of land transaction tax.

• An "intermediate transaction" is a purchase of multiple dwellings where only one qualifies as a potential main residence, and it would otherwise attract the higher rates of LTT because the buyer holds interests in other dwellings.
• If this intermediate transaction takes place during the "interim period" — the window between the buyer disposing of their previous main residence and completing their replacement purchase — special rules apply to determine whether the higher rates are due.
• When assessing whether a purchased dwelling qualifies as the buyer's intended main residence, the usual test (based on the buyer's position at the effective date) is extended so that it can also be judged at the end of the interim period, giving the buyer more time to satisfy the qualifying conditions.
• The replacement of a main residence can involve a previous dwelling located in Wales, England, Northern Ireland, or Scotland, and the interim period is defined by reference to the relevant jurisdiction's land transaction tax or equivalent legislation.