Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 2 paragraph 19

Relief for qualifying subsales

Schedule 2 paragraph 19 provides relief from land transaction tax for the original buyer where a qualifying subsale takes place, reducing or eliminating the tax that would otherwise be due on the original contract.

• Where the original buyer enters into a subsale contract covering all of the property from the original contract, the original buyer is fully relieved from tax on the original transaction, provided the subsale is performed at the same time as the original contract and relief is claimed.
• Where the subsale covers only part of the original property, the consideration for the original transaction is reduced by the amount of consideration attributable to the portion being subsold, and this reduction can apply multiple times if there are multiple qualifying subsales.
• Relief is not available if the original contract had already been substantially performed before the subsale was entered into, or if the subsale transaction itself benefits from alternative property finance relief under Schedule 10.
• If a subsale qualifies in relation to more than one original contract, the relief provisions are applied separately to each original contract to determine what relief, if any, is available.