Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 Schedule 21 para 2

Relief for compliance with planning obligations

Schedule 21 paragraph 2 provides relief from land transaction tax where a land transaction is carried out to comply with a planning obligation (commonly known as a Section 106 agreement) and the buyer is a public body.

• A land transaction entered into to comply with a planning obligation or a modification of one is relieved from LTT, provided three conditions are met: the obligation is enforceable against the seller, the buyer is a public body, and the transaction completes within five years of the obligation being entered into or modified.
• A planning obligation is one made under Section 106 of the Town and Country Planning Act 1990, properly executed in accordance with that section, and a modification is one made under Section 106A of the same Act.
• Public bodies that qualify as buyers for this relief include Welsh county or county borough councils, Special Health Authorities, Local Health Boards, and NHS Trusts established under the National Health Service (Wales) Act 2006.
• The Welsh Ministers have the power to specify additional persons or bodies as qualifying public bodies for the purposes of this relief by way of regulations.