Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 9, paragraph 2

Definition of a sale and leaseback arrangement

Schedule 9, paragraph 2 defines what constitutes a sale and leaseback arrangement for the purposes of Land Transaction Tax.

• A sale and leaseback involves two parties and two linked transactions
• Person A transfers or grants a major interest in land to Person B — this is the "sale" element
• Person B then grants a lease over that same interest back to Person A — this is the "leaseback" element
• The lease granted back to Person A must derive from the major interest that was originally transferred to Person B