Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 6 paragraph 2

Treatment of fixed-term leases — ignoring break clauses and renewal rights

Schedule 6, paragraph 2 establishes that when applying Land Transaction Tax provisions to a fixed-term lease, you must treat the lease as running for its full stated term, regardless of any break clauses, termination rights, or renewal options.

• When calculating LTT on a fixed-term lease, the full stated term of the lease is used — no adjustment is made for the possibility that the lease might end early.
• Any contingency that could cause the lease to terminate before the end of its fixed term is disregarded for LTT purposes.
• Rights held by either the landlord or the tenant to terminate the lease before its natural expiry are ignored.
• Similarly, any right held by either party to renew the lease beyond its fixed term is not taken into account when applying LTT provisions.