Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 6 paragraph 18

Assignment of a lease — assumed obligations not treated as consideration

Schedule 6 paragraph 18 provides that when a lease is assigned, the new tenant's assumption of the existing lease obligations is not treated as chargeable consideration for the assignment.

• When a lease is assigned, the new tenant (assignee) takes on the existing obligations of the outgoing tenant
• The assumption of the obligation to pay rent under the lease does not count as chargeable consideration
• The assumption of any other tenant obligations under the lease (such as repair or maintenance covenants) also does not count as chargeable consideration
• This means Land Transaction Tax is not charged on these assumed obligations — only on any separate payment or other consideration given for the assignment itself